Gold steadied on Thursday off the previous day's two-month low after weaker than expected private sector payrolls data fed into a more cautious view on the pace of U.S. interest rate hikes this year.
The metal remained hemmed into a narrow range, however, ahead of a key U.S. non-farm payrolls data on Friday. Investors are wary of betting that the Fed will hold off on tightening monetary policy after hiking interest rates earlier this year.
Spot gold slipped by 0.19 percent to $1,224.11 an ounce, little changed from $1,226.45 an ounce late on Wednesday, but off an earlier low of $1,222.06.
The dollar fell against the euro and yen on Thursday after data showed the U.S. private sector created fewer jobs than expected in June, raising concerns that the labour market is losing some momentum.