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US non-farm payrolls increased by 177,000 jobs last month

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China evaluating US offer to negotiate tariffs

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Gold down 2.1% so far this week

(Updates with U.S. morning hours)

By Anjana Anil and Sarah Qureshi

May 2 (Reuters) - Gold edged higher on Friday, after

hitting a two-week low in the previous session, but easing trade

tensions and a strong jobs report kept prices on track for a

second consecutive weekly loss.

Spot gold was up 0.5% at $3,255.01 an ounce as of

9:41 a.m. ET (1341 GMT), after hitting its lowest since April 14

on Thursday. Prices were down 2.1% for the week, after hitting a

record high of $3,500.05 on April 22.

U.S. gold futures rose 1.3% to $3,262.10.

China's commerce ministry said the U.S. has repeatedly

expressed its willingness to negotiate on tariffs and that

Beijing's door is open for talks.

"Gold looks like $3,500 may be a top for a little while,

especially if some trade deals start to come through and some

risk on appetite starts to break through the kind of negative

euphoria that we've been seeing since the tariff talks," said

Daniel Pavilonis, senior market strategist at RJO Futures.

Gold prices briefly pared gains earlier in the session after

data showed nonfarm payrolls increased by 177,000 jobs last

month after rising by a downwardly revised 185,000 in March. A

Reuters survey had forecast an increase of 130,000 jobs.

However, the report is backward-looking and it is too early

for the labor market to show the impact of U.S. President Donald

Trump's on-and-off-again tariffs policy.

Traders trimmed bets that the Federal Reserve will cut rates

as soon as June after the jobs report.

Yield on benchmark 10-year Treasury bonds rose.

Higher interest rates tend to make non-yielding bullion less

appealing to investors.

Spot silver edged 0.1% lower to $32.35 an ounce,

platinum rose 1% to $967.70, and palladium gained

0.9% to $949.00. All three metals were on track for weekly

declines.