PRECIOUS-Gold set for worst week in four on strength in dollar, yields

* Dollar set for best week in three months
* Silver down 2% for the week
* Platinum, palladium face best week in five
* U.S. non-farm payrolls data due at 1330 GMT

(Adds analyst comment, updates prices)
By Asha Sistla
Feb 5 (Reuters) - Gold rose on Friday as the dollar
retreated slightly but was set for its worst weekly dip in four
as investors continued to bank on the greenback with U.S.
Treasury yields also gaining.
Spot gold XAU= rose 0.5% to $1,800.60 per ounce by 1255
GMT, after falling to its lowest since Dec. 1 on Thursday. U.S.
gold futures GCv1 gained 0.6% to $1,802.
"Gold came relatively close to the previous low above
$1,760. So some just bought it on dips and we have a little
lower dollar which is helping gold," said ABN Amro analyst
Georgette Boele.
"If you get better numbers today in the U.S. employee
report, Wall Street is going to be very optimistic and dollar
will move up and you'd probably get a retest of those lows (in
gold) we've seen last year." Investors await U.S. non-farm payrolls data due at 1330 GMT.
For the week, gold has shed 2.4% so far, which would be its
biggest decline since the week ended Jan. 8.
"Gold is getting clobbered," said CMC Markets UK's chief
market analyst, Michael Hewson, adding higher yields in U.S.
Treasuries are much more attractive than holding money in gold.
The dollar .DXY was set for its best week in three months,
while U.S. Treasury yields also rose. USD/ US/
Gold's status as a hedge against inflation from widespread
stimulus has been challenged by higher yields because they
increase the opportunity cost of holding non-yielding bullion.
"Silver's fate will be similar to gold and it can retest $22
over the next two weeks, although it'll find some support
through Biden's solar push," said Jeffrey Halley, a senior
market analyst at OANDA.
Spot silver XAG= rose 0.6% to $26.45 but was down 2% this
week. Prices have shed over 12% since scaling a multi-year peak
of $30.03 on Monday propelled by a GameStop-style retail frenzy.
Platinum XPT= added 1% to $1,107.95 per ounce and
palladium XPD= gained 1.1% to $2,308.18, with both metals
headed for their best week in five.