(Bloomberg) -- Gold held its advance above $2,500 an ounce ahead of US economic data coming Friday that may prove key in shaping the Federal Reserve’s rate cut this month.

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Bullion rose 0.8% Thursday following a report that showed US companies added the fewest jobs last month since the start of 2021. The figures were more evidence that the labor market is shifting into a lower gear, boosting chances the central bank’s expected pivot to monetary easing will be the first in a series of cuts.

A weak US payrolls report on Friday may help determine whether the Fed cuts by 25 or 50 basis points at its next meeting. Lower rates are typically positive for non-interest bearing gold, which has also been supported this week by a weaker dollar as the precious metal is priced in the US currency.

Bullion is up by more than 20% this year and peaked at a record $2,531.75 an ounce in August. Along with Fed rate-cut optimism, it’s been supported by strong over-the-counter purchases and haven demand due to conflicts in the Middle East and Ukraine.

Spot gold was little changed at $2,517.23 at 10:18 a.m. in London and is 0.6% higher for the week so far. The Bloomberg Dollar Spot Index slipped 0.1% after two straight days of decline. Silver and palladium edged lower.

--With assistance from William Clowes.

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