July 3 (Reuters) - Gold rose on Friday and was headed for its first weekly gain in five, as investors dialled back expectations of Federal Reserve interest rate hikes following softer-than-expected U.S. jobs data.

FUNDAMENTALS

* Spot gold XAU= was up 0.5% to $4,144.83 per ounce, as of 0052 GMT, rising to its highest level since June 23. U.S. gold futures GCcv1 for August delivery gained 0.8% to $4,157.50.

* Bullion was on track for a weekly gain of 1.2%, its first since May 25, as weaker-than-expected nonfarm payrolls and private payrolls data tempered concerns around inflation and higher-for-longer interest rates.

* Nonfarm payrolls increased by 57,000 jobs last month, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls advancing 110,000.

* Traders are now pricing in roughly a 54% chance of a rate hike in September, down from 66% before the data, according to the CME FedWatch Tool. FEDWATCH/

* San Francisco Federal Reserve President Mary Daly said on Thursday that U.S. monetary policy is "slightly restrictive" but that with "exceedingly strong" investment growth in AI-related technology and a stable labor market, it's unclear what the Fed's next step should be.

* The World Gold Council said that central banks were back in buying mode in May and, based on the latest reported data, official gold reserves increased by a net 41 tons during the month.

* Spot silver XAG= rose 0.5% to $61.28 per ounce, platinum XPT= gained 1.1% to $1,634.30, and palladium XPD= inched up 0.2% to $1,270.25. All three metals were headed for weekly gains.