Spot gold had fallen 0.2 percent to $1,222.65 per ounce by 0104 GMT. It has dropped 1.5 percent this week and could be heading for its biggest weekly decline since early May.
U.S. gold futures for August delivery declined 0.1 percent to $1,222.40 per ounce.
The dollar was steady in early Asian trade on Friday, on track for weekly gains but likely to tread water throughout the day as investors braced for the monthly U.S. employment numbers.
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