*

US non-farm payrolls report due on Friday

*

Gold ETFs drew first net inflow in four years in 2024, WGC

says

*

Dollar index near one week high

(Updates with latest prices)

By Anushree Mukherjee

Jan 9 (Reuters) - Gold prices rose to a near four-week

high on Thursday, supported by safe-haven demand, while

investors weighed how U.S. President-elect Donald Trump's

policies would impact the economy and inflation.

Spot gold was up 0.3% at $2,670.16 per ounce, as of

10:55 a.m. ET (1555 GMT). U.S. gold futures rose 0.6% to

$2,689.50.

"Safe-haven demand is modestly supporting gold, offsetting

downside pressure coming from a stronger dollar and higher

rates," UBS analyst Giovanni Staunovo said.

The dollar index hovered near a one-week high, making

gold less appealing for holders of other currencies, while the

benchmark 10-year Treasury yield stayed near

eight-month peaks.

"Market uncertainty is likely to persist with the upcoming

inauguration of Donald Trump as the next U.S. president,"

Staunovo said.

Trump is considering declaring a national economic emergency

to provide legal justification for a series of universal tariffs

on allies and adversaries, CNN reported on Wednesday, citing

sources familiar with the matter.

Trump will take office on Jan. 20 and his proposed tariffs

could potentially ignite trade wars and inflation. In such a

scenario, gold, considered a hedge against inflation, is likely

to perform well.

Investors' focus now shifts to Friday's U.S. nonfarm

payrolls due at 08:30 a.m. ET for further clarity on the Federal

Reserve's interest rate path.

Non-farm payrolls likely rose by 160,000 jobs in December

after surging by 227,000 in November, a Reuters survey showed.

Gold also hit a near four-week high on Wednesday after a

weaker-than-expected U.S. private employment report hinted that

the Fed may be less cautious about easing rates this year.

However, minutes of the Fed's December policy meeting showed

officials' concern that Trump's proposed tariffs and immigration

policies may prolong the fight against rising prices.

High rates reduce the non-yielding asset's appeal.

The World Gold Council on Wednesday said physically-backed

gold exchange-traded funds registered their first inflow in four

years.

Spot silver rose 0.3% to $30.21 per ounce, platinum

fell 0.2% to $953.55 and palladium shed 0.8% to

$920.75.