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Gold was little changed on Thursday as investors kept to the sidelines ahead of U.S. payrolls data that could provide more clues on the size of an expected rate cut this month.

Spot gold was nearly unchanged at $2,497.47 per ounce by 0222 GMT. U.S. gold futures rose 0.1% to $2,527.60.

Non-yielding bullion tends to perform well when interest rates are low. It is also considered a hedge against economic and political uncertainties.

Data overnight showed that U.S. job openings dropped to a 3-1/2-year low in July, suggesting the labour market was losing steam, but the reduction on its own is probably not enough to warrant a half-percentage-point rate cut by the Federal Reserve this month.

Traders raised the odds of a 50-basis-point Fed rate cut on Sept. 18 to 45% from 38%, according to the CME FedWatch Tool. The U.S. nonfarm payrolls (NFP) report due on Friday is pivotal for Fed expectations.

If the NFP figures undershoot expectations, it would bring a 50-bp cut back into the picture, likely denting the dollar and boosting gold, said Tim Waterer, chief market analyst, KCM Trade.

"The highs for gold in 2024 may not yet have been reached, with the $2,600 level a viable target before year-end, if the Fed delivers the goods with a succession of quick-fire rate cuts before year-end," said Waterer.

The ADP employment report, a reading on the U.S. services industry, and jobless claims data due later in the day are also on radar.

San Francisco Fed President Mary Daly said that rate cuts were needed to keep the labour market healthy, while Atlanta Fed President Raphael Bostic noted that keeping rates too high much longer risked causing too much harm to employment.

Among other metals, spot silver gained 0.1% to $28.32 per ounce, platinum climbed 0.8% to $909.47 and palladium was up 0.1% at $934.83.