* Gold, silver heads for worst week in over 3-months * U.S. non-farm payrolls due at 1230 GMT * Dollar hits three-week high * U.S. 10-year Treasury yield rises above 1.6% (Recasts, adds comments, updates prices) June 4 (Reuters) - Gold prices slipped to a more than two-week low on Friday, weighed down by a stronger dollar and an uptick in bond yields after upbeat U.S. economic data bolstered bets over possible tapering of stimulus measures by the Federal Reserve. Spot gold slid 0.4% to $1,862.68 per ounce as of 0230 GMT, having hit its lowest since May 19 at $1,855.59 earlier in the session. Prices have fallen more than 2% so far this week. U.S. gold futures dropped 0.5% at $1,864.10 per ounce. “A much stronger dollar, rise in U.S. Treasury yields along with a combination of generally overbought conditions in gold led to a rather decent sell-off,” ED&F Man Capital Markets analyst Edward Meir said. “We also had hints from the Fed that it could be opening up to the possibility of tightening. We still are constructive on gold and see some buying if the declines continue.” The dollar index jumped to a three-week high against its rivals, making gold more expensive for holders of other currencies, while the benchmark 10-year yield rose to 1.63%. Data on Thursday showed the number of Americans filing new claims for unemployment benefits dropped below 400,000 last week, while U.S. private employers stepped up hiring in May. The United States is weathering the pandemic and beginning to make progress toward full employment and 2% inflation, Fed Bank of Dallas President Robert Kaplan said. Investors are also keeping watch on U.S. May non-farm payrolls data due later on Friday, for more cues on labour market recovery in the world’s biggest economy and near-term policy action from the Fed. Elsewhere, silver slipped 0.5% to $27.31 per ounce and was on track for the biggest weekly fall since late March. Palladium fell 0.3% to $2,829.26 and platinum was down 0.7% at $1,148.50. (Reporting by Brijesh Patel in Bengaluru; Editing by Ramakrishnan M.) Our Standards: The Thomson Reuters Trust Principles.