PRECIOUS-Gold slips as dollar strengthens before U.S. jobs report

* U.S. non-farm payrolls data due at 1230 GMT
* Gold on track for seventh straight week of gains
* Palladium set to post fifth weekly rise

(Updates prices, adds details)
By Swati Verma
July 5 (Reuters) - Gold prices edged lower on Friday as the
dollar gained before the release of U.S. jobs data, which could
offer guidance on the U.S. Federal Reserve's upcoming interest
rate decisions.
Spot gold XAU= was down 0.3% at $1,411.51 per ounce as of
1156 GMT. U.S. gold futures GCcv1 slipped 0.5% to $1,414.30 an
ounce.
"The gold market still has to adjust to the rapid rally we
saw at the beginning of the week when prices shot back above
$1,400 per ounce, which in my view was driven by more positive
sentiment in the gold market rather than any fundamental
developments," said Julius Baer analyst Carsten Menke.
"At the moment, we see the dollar a tad stronger and the
euro weak, which usually holds gold back. The readiness to push
prices higher by speculators is also pretty limited."
The dollar index .DXY against a basket of six major
currencies gained 0.2%, making gold more expensive for holders
of other currencies. FRX/
Despite a slight decline on Friday, the metal is still up
0.2% so far this week, set for a seventh straight week of gains.
Investors are now waiting for the U.S. labor market non-farm
payrolls data due at 1230 GMT, which are expected to have jumped
by 160,000 in June compared with a 75,000 increase in May.
"A positive surprise clearly would be negative for gold, as
it would put in question the necessity of a rate cut by the Fed,
which the market has priced in already and had been benefiting
gold," Menke added.
Gold prices climbed to a six-year high of $1,438.63 an ounce
last week, driven by expectations of rate cuts by major central
banks and fears of a slowdown in the global economy.
Lower interest rates tend to support the buying of
non-interest-paying bullion, which is often seen as an
alternative investment during times of political and financial
uncertainty.
"The main trend remains bullish as prices are holding well
above the key support level of $1,380 and the psychological
threshold of $1,400," Carlo Alberto De Casa, chief analyst with
ActivTrades, wrote in a note.
"Any slowdown in the U.S. economy which could make the Fed
take a more dovish turn could be a supportive element for
bullion."
Meanwhile, India, the world's second-biggest bullion
consumer, raised import duties on gold and other precious metals
to 12.5% from 10%, something that could boost the incentive for
smuggling. Silver XAG= fell 0.3% to $15.23 per ounce, while platinum
XPT= edged 0.2% lower to $831.12.
Palladium XPD= was steady at $1,562.67 an ounce, but was
still heading for a fifth straight weekly gain.