Thursday in Singapore, bullion flat on bargain hunting after prices slipped below an ounce but strong stock markets were likely to weigh, and holdings on the ETF fell slightly.

Spot gold gained 10 cents to $1,194.70 an ounce by 2:05 GMT after rising to a 2-week high on Wednesday as physical buying, better-than-expected US jobs data and hopes for stronger Chinese demand lifted the metal for its sixth straight daily gain.

Gold has risen despite a stronger dollar as it gradually reverses a trend earlier this year when the metal moved in tandem with the US currency, driven by safe-haven demand.

The US dollar was mostly higher in Asia on Thursday after US economic data beat the market's low expectations and sparked a bout of short-covering, though the overall mood remains bearish into the key payrolls report.

Investors await the release of more data from the United States, particularly the payrolls report, which will offer clues on the health of the economy. Friday's government report on jobs may show a drop of 65,000 in July as census jobs dried up.

China reported today, it would allow more domestic banks to export and import gold as part of steps to encourage more liquid trade, which could underpin the country's growing private demand for the metal.

US gold futures for December delivery were also steady at $1,196.5 an ounce after hitting a high of $1,199.5.

The SPDR Gold Trust reported its holdings to drip to 1,281.834 tonnes by August 4 from 1,282.279 on July 28. The holdings hit a record at 1,320.436 tonnes on June 29.