LONDON, Aug 4: Gold inched lower on Friday after trading in a tight $4-an-ounce range below a two-week high, with investors awaiting release of crucial US jobs data and next week's Federal Reserve meeting for direction.

But the market remained vulnerable to choppy trading because of thin business in the current summer holiday period, as many dealers are away from their desks. The Middle East conflict was seen providing some support, dealers said.

Gold hit a high of $647.00 an ounce before dipping to $644.15/645.15 by 0947 GMT, down from $646.50/648.00 late in New York on Thursday and a two-week high of $655.45 on Wednesday.

Traders await the outcome of today's data and Tuesday's Fed rate decision for a clearer indication of short- to medium-term direction, while the ongoing unrest in the Middle East continues to provide safe-haven support, James Moore, analyst at TheBullionDesk.com, said.

The non-farm payrolls report is the last major piece of news before the US -percentage point rate rises on Aug. 8, which would take the key rate to 5.5 per cent.

Gold was unable to rise beyond Wednesday's $655.45 an ounce as selling pressure emerged at higher levels.

The metal was also under pressure because of oil prices, which edged down as fears dissipated over a storm in the Gulf of Mexico. Gold is often seen as a hedge against inflation.

The physical sector saw sales of scrap gold from parts of Asia, and dealers said jewellery makers were waiting for the price to fall back to around $600 an ounce, a level last seen in June, before returning to the market.

Premiums for gold bars were zero to the spot London price in Singapore, while in Hong Kong, gold bars were offered at a discount of up to 20 US cents an ounce.

In other metals, silver climbed to a two-month high of $12.22 an ounce before falling to $12.13/12.23 an ounce, versus $12.04/12.14 in the US market.

Platinum was $1 up at $1,238/1,243 an ounce, while palladium dropped $1 to $321/326 from the New York close.—Reuters