Domestic gold and silver prices edged higher on Friday as the dollar depreciated and as investors awaited US jobs data for clues on the timing of tapering of stimulus by the Federal Reserve. Weakness in the dollar makes precious metals more attractive for those holding other currencies. Gold was headed for its first weekly loss in a month.

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At 9:56 am, Multi Commodity Exchange (MCX) gold futures for October delivery traded with a gain of Rs 69 or 0.15 percent to Rs 47,060 per 10 grams, compared with its previous close of Rs 46,991 per 10 grams.

Silver December futures were up by Rs 36 or 0.06 percent at Rs 63,321 per kilogram. On Thursday, the white metal contract had settled at Rs 63,285 per kg.

International gold and silver prices moved higher as the greenback slid against major peers. Spot gold was last seen trading 0.20 percent higher at $1,813.15 per ounce. For the week, it was down 0.2 percent so far. US gold futures were also up 0.20 percent, at $1,815.50.

Silver was up 0.20 percent at $23.92 an ounce.

The dollar index -- which gauges strength in the greenback against six other currencies -- hit a one-month low before paring those losses. It was last seen trading down 0.02 percent at 92.213. The index was headed for a second straight weekly loss.

Meanwhile, the recent strength in the rupee amid buying in the domestic equity market is pressurising the precious metal prices.

Data on non-farm payrolls in the US will be released at 1230 GMT (6:00 pm in India). Meanwhile, data showed the number of Americans filing joblessness benefits dropped last week, while layoffs last month dropped to their lowest level in more than 24 years, according to a report by news agency Reuters.

Analysts keenly await cues from the world's largest economy after Fed Chairman Jerome Powell said last week that the US central bank could start to cut its asset purchases this year if job growth continues. He however added that it would remain cautious in decision to raise interest rates.

"Gold prices continue to struggle to find momentum despite plenty of bullish sentiments such as a weakening dollar, falling yields and positive Fed commentary. Bulls have some technical advantage. Helping gold make a close above $1835/ounce is still a challenge for market participants," said Sandeep Matta, Founder, TRADEIT Investment Advisor.

"Employment data release from the US is the key event for the market participants which is expected to come lower than expectation and may bring new life to gold prices," he added.

He sees Rs 47,033 per 10 grams as a key level for gold in India.

There is little risk aversion in the market as upbeat US data is slightly negative for safe haven buying in precious metals, according to Manoj Kumar Jain, Director-Head of Commodity Research, Prithvi Finmart.

"We expect the US labour department's report to have an impact on rising coronavirus cases in the US in the last month. It could support both precious metals again," he said.

Jain sees support for gold at Rs 46,770-46,550 and resistance at Rs 47,150-47,330. For silver, he has pegged support at Rs 62,900-62,500 and resistance at Rs 63,600-64,100 levels.

He recommends buying silver around the Rs 63,000 mark for a target of Rs 64,000 with a stop loss at Rs 62,500.