GOLD prices were on track on Friday for their biggest weekly rise since early April, buoyed by hopes the U.S. Federal Reserve would not raise interest rates at its policy meeting this month, which also weighed on the dollar and bond yields.

Spot gold was up 0.1% to $1,980.49 per ounce at 1005 GMT. U.S. gold futures were up 0.1% to $1,997.40.

Bullion has gained 1.7% so far this week, heading for its best week since the one ended April 7.

With the resolution of uncertainty around the U.S. debt ceiling, "investors are now taking a pause to see what's going to happen with the non-farm payrolls" which are due at 1230 GMT, said ActivTrades senior analyst Ricardo Evangelista.

The U.S. dollar index and 10-year Treasury yields were both headed for their worst weeks since mid-March, making dollar-priced, zero interest-bearing bullion more attractive.

Gold prices could move a little higher from here as the Fed is expected to keep policy on hold in June, said Edward Meir, a metals analyst at Marex.

Philadelphia Fed chief Patrick Harker said on Thursday that U.S. central bankers should not raise interest rates at their next meeting.

Gold, which suffers when rates are higher, found support as markets scaled back expectations to a 27% chance for the Fed to hike rates in June, compared to a 64% chance seen one week ago.

Markets now see a 73% chance for the Fed to keep rates unchanged this month.

But, "if the jobs report today surprises to the upside, we should expect some losses in gold prices," Evangelista said.

Spot silver ticked up 0.1% to $23.93 per ounce, also headed for a weekly gain.

Platinum rose 0.7% to $1,013.28, and palladium advanced 1% to $1,408.19, with both set for weekly losses.

 - Reuters