Gold rose on Friday, steadying above $931 (U.S.) per ounce as the U.S. dollar lost ground versus the euro, with deeper concerns over the U.S. economic outlook also underpinning the metal.
Spot gold stood at $931.70 by 1510 GMT, up from $928.65 late in New York. Earlier it rose to $933.90.
After a week of tracking a volatile dollar, gold is on course for a 0.6 percent fall on the week -- retreating further from a four-month high near $990 hit in early June.
The precious metal found support above $931 after falling on Thursday, when weaker-than-expected U.S. non-farm payroll data sent investors piling into the relative safety of the dollar.
The U.S. currency lost some ground against a basket of six currencies but remained broadly positive on Friday, with U.S. financial markets closed ahead of Independence Day.
Dollar moves have proved influential of late in determining immediate interest for bullion from foreign investors.
But the bleak jobs data and other mixed economic indicators have highlighted gold's core appeal as a harbour from risk.
Analysts said gold was being supported by increased demand from retail investors, but also persisting questions about the world economy's ability to right itself in coming months.
"This is typical of the situation which you get when the economy is bottoming out: the data is mixed, there is no clear trend, and you have questions about the pace and sustainability of economic recovery leading some investors back into gold," said Peter Fertig, analyst at Quantitative Commodities Research.
"Retail investors are most likely spooked by what they read in internet forums, that inflation is around the corner and they should buy gold, but that would only be a risk if the economy gained momentum very quickly," he added.
Bearish sentiment in the wake of weak unemployment data from the United States and Europe weighed on other commodities, dragging crude below $67 per barrel.
Analysts said a combination of persistent worries -- from quantitative easing to Chinese remarks about currency reserve diversification -- would keep the dollar under pressure in months ahead and provide a backbone of support for gold.
"Part of the reason gold's retreat was tempered really has to do with the limited upside to which the dollar is gaining," said Ashraf Laidi, an analyst at CMC markets.
"This is partially due to worries about quantitative easing and these Chinese rumblings about diversification," he added.
U.S. gold futures for August delivery rose 0.1 percent to $932.60 per ounce, compared with $931.00 on the COMEX division of the New York Mercantile Exchange.
While investor interest in gold appeared stable, physical demand was lagging.
The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust , said holdings were 1,120.55 tonnes as of July 2, unchanged from the previous business day.
Holdings in gold by ETF Securities, which reflect retail appetite for bullion, dropped by 12,543.53 ounces as of July 2, according to a daily report from the company.
Indian data showed the country's gold imports stood at about 59.8 tonnes in the first six months this year, down 57 percent from the same period last year. India's gold imports in June were likely around 8 to 10 tonnes, down 24 tonnes from the same month a year ago, a senior official from Bombay Bullion Association said this week.
In other precious metals, spot silver inched up to $13.43 per troy ounce versus $13.41 previously, platinum stood at $1,186.50 from $1,181.50, while palladium was at $248.00 from $249.00.