GOLD prices were poised for a second straight weekly decline, although bullion held nearly steady on Friday as investors remained cautious ahead of the U.S. non-farm payrolls data that could provide cues on the Federal Reserve's rate cut timeline.

Spot gold held its ground at $2,299.49 per ounce, as of 0702 GMT, but has lost more than 1% this week. Prices have fallen more than $130 after hitting a record high of $2,431.29 in April.

U.S. gold futures were flat at $2,309.20.

"The big decline over the last two weeks was due to fading concerns of geopolitical risks and hawkish repricing" in rates markets, said OCBC FX strategist Christopher Wong.

A renewed push led by Egypt to revive stalled negotiations between Israel and Hamas has raised expectations that a ceasefire agreement could be in sight.

The Fed on Wednesday indicated it is still leaning towards eventual reductions in borrowing costs, but put a red flag on recent disappointing inflation readings that could make those rate cuts a while in coming. Markets are pricing in a 73% chance of a rate cut in November, as per CME's FedWatch Tool.

Bullion is considered an inflation hedge, but elevated interest rates reduce the appeal of the non-yielding asset.

A softer payrolls report could provide support for gold, Wong added. The U.S. non-farm payrolls report is due at 1230 GMT.

Spot gold is biased to break resistance at $2,311 and climb to a range of $2,325-$2,351, according to Reuters technical analyst Wang Tao.

Spot silver fell 0.6% to $26.54, heading for a weekly decline.

As silver dips back towards the $25-$26 breakout area, a bullish reversal sign is likely to follow, Fawad Razaqzada, market analyst at City Index, said in a note.

Platinum gained 0.5% to $954.09, rising more than 4% so far in the week. Palladium fell 1% to $925.78.

 - Reuters