Seasonally adjusted US nonfarm payrolls rose 57,000 in June, below market expectations for a 110,000 increase.

Gold hit a daily high in European trade and extended a steady rebound after a modest dollar pullback, but remains capped inside the prior session's range as elevated Fed rate-hike expectations and geopolitical risk support the dollar. Traders are sidelined ahead of US nonfarm payrolls. CME FedWatch prices about a 64% chance of a September Fed hike and roughly an 85% chance of at least one hike by year-end. Fed chair Kevin Warsh reinforced the 2% inflation target in remarks Wednesday. Technically, gold trades below the 100-period moving average, reinforcing a near-term bearish bias.

Japan's government economic adviser Nagase said a modest Bank of Japan rate hike is crucial to correcting excessive yen depreciation.