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Gold prices were flat on Thursday as investors held back from making big bets ahead of a crucial U.S. payrolls data later this week that could offer more clues on the Federal Reserve's interest rate trajectory.

Spot gold held its ground at $2,025.69 per ounce by 0516 GMT. U.S. gold futures fell 0.3% to $2,042.50.

U.S. data this week showed gradual signs of a cooling labour market in the United States, with job openings falling to a 2-1/2-year low in October, while private payrolls increased less than expected last month.

Investors' focus now shifts to U.S. non-farm payrolls data on Friday ahead of the Fed's updated economic and interest rate projections at their Dec. 12-13 policy meeting.

"The expectation broadly will be for a lower non-farm number so if it comes in at expectations or higher, you might expect a bit of a sell-off in gold," said Nicholas Frappell, global head of institutional markets at ABC Refinery.

Recent dovish comments from Fed officials and a slew of weaker-than-expected economic data raised expectations that the U.S. interest rates have peaked and the Fed may begin to cut rates early next year.

Traders are pricing in about a 60% chance of a rate cut by March next year, CME's FedWatch Tool shows.

"Weaker-than-expected economic data are bolstering expectations for early rate cuts by the U.S. Federal Reserve ... rate cuts later in the year (2024) should be supportive for gold investment demand," ANZ analysts wrote in a note.

Lower interest rates tend to support non-interest-bearing bullion.

Spot gold looks neutral in a range of $2,019 to $2,033 per ounce, and an escape could suggest a direction, according to Reuters market analyst Wang Tao. [TECH/C]

Spot silver fell 0.4% to $23.79 per ounce, platinum dropped 0.3% to $887.08 and palladium edged 0.3% lower to $940.68 per ounce.