Gold fell on Friday as commodity index readjustments and a firm dollar kept the pressure on prices, with investors positioning ahead of crucial US non-farm payrolls data due later in the day.

Spot gold edged 0.2 percent lower to US$4,469.03 per ounce as of 0536 GMT, though it was set for a more than 3 percent weekly gain. Bullion hit a record high of US$4,549.71 on December 26.

US gold futures for February delivery firmed 0.4 percent to US$4,477.70.

"Gold prices, for the last three days, have traded off on some profit-taking, but indeed a key driver at the moment is U.S. dollar strength in advance of NFP data," said independent analyst Ross Norman.

The U.S. dollar advanced to a near one-month high, as traders braced for a U.S. Supreme Court decision on President Donald Trump's use of emergency tariff powers. A stronger dollar makes greenback-priced bullion more expensive for other currency holders.

On non-farm payrolls, economists expect modest job growth of 60,000 and a slight drop in the unemployment rate to 4.5 percent from 4.6 percent.

Prices are expected to be under pressure over the next few days as the annual Bloomberg Commodity Index rebalancing - a periodic adjustment of commodity weightings to keep the index aligned with market conditions - begins this week.

"Several indexes are reweighting the amount of precious metals and gold in them at the beginning of the year. So, to some extent, there's a bit of weakness on index rebalancing, but fundamentally I think that things remain quite positive," Norman added.

Gold prices could rise to US$5,000 an ounce in the first half of 2026 on rising geopolitical risks and debt, HSBC said.

Non-yielding assets tend to do well in a low-interest-rate environment and during economic uncertainties.

Spot silver lost 0.1 percent to US$76.83 per ounce after hitting an all-time high of US$83.62 on December 29. The white metal was on track to log a more than 6 percent weekly rise.

Spot platinum shed 0.8 percent to US$2,250.30 per ounce after scaling a record of US$2,478.50 last Monday. Palladium was steady at US$1,785.25 per ounce. Both metals were set for weekly gains as well.

REUTERS

Gold falls as commodity index adjustments weigh ahead of US jobs data