July 5 (Reuters) - Gold prices edged up on Friday and were on track for a weekly gain, while traders awaited U.S. employment data to gauge the trajectory of the Federal Reserve's potential interest rate cuts.
FUNDAMENTALS
* Spot gold was up 0.1% at $2,358.14 per ounce, as of 0045 GMT and was up more than 1% for the week. U.S. gold futures was down 0.1% to $2,366.30.
* The U.S. nonfarm payrolls report is due at 1230 GMT.
* Economic data on Wednesday, including weak services and ADP employment reports, pointed to a slowing U.S. economy. A separate report showed an increase in initial applications for U.S. unemployment benefits last week.
* Traders are currently pricing in about a 73% chance of a Fed rate cut in September, according to CME FedWatch Tool.
* Lower rates reduce the opportunity cost of holding non-yielding gold.
* According to minutes of Fed's June session, officials counselled a wait-and-see approach before committing to interest rate cuts.
* On the geopolitical front, Israeli Prime Minister Benjamin Netanyahu told U.S. President Joe Biden on Thursday he has decided to send a delegation to resume stalled negotiations on a hostage release deal with Hamas, their administrations said.
* Spot silver rose 0.2% to $30.45 and was headed for its best week since May 17.
* Platinum fell 0.2% to $1,000.82 while palladium gained 0.2% to $1,019.11. Both the metals are headed for weekly gains.
DATA/EVENTS (GMT)
0600 Germany Industrial Output MM May
0600 Germany Industrial Production YY May
0600 UK Halifax House Prices YY, MM June
1230 US Non-Farm Payrolls June
1230 US Unemployment Rate June
1230 US Average Earnings YY June
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Sonia Cheema)
