* June non-farm payroll figure up less than expected
* Market monitors Greek debt crisis (Recasts, updates prices, adds comment)
By Clara Denina
LONDON, July 2 (Reuters) - Gold cut some losses on Thursday, rebounding slightly from a 3-1/2 month low after data showed the U.S. labour market to be weaker than expected in June, indicating that the Federal Reserve could hold off from raising interest rates in September.
The non-farm payrolls figure rose by 223,000 last month, below the 230,000 that economists polled by Reuters had expected. ID:nL1N0ZI0OH
Spot gold XAU= had slid to $1,159.60 an ounce, its lowest since March 18, before the U.S. data and was trading 0.4 percent down at $1,164.16 by 1356 GMT. It had lost about 1 percent in the previous two sessions.
"We don't need many more numbers for the Fed to see that a September rate hike will be too early," Saxo Bank senior manager Ole Hansen said.
"It was probably what the gold market needed to avoid triggering more selling appetite."
The dollar .DXY retreated from an earlier three-week high against a basket of major currencies. FRX/
The jobs report was being watched closely for indications of a rebound in the world's largest economy after a first-quarter slump. The Fed has said that it will raise rates only if it sees signs of a sustained economic recovery.
Gold prices have been hamstrung by the prospect of higher U.S. interest rates this year, which would increase the opportunity cost of holding the metal.
The market was also following developments in the Greek debt crisis, which has so far failed to trigger strong retail demand for the metal, which is often perceived as a safe-haven asset.
The focus in the Greek crisis is on Sunday's referendum.
Prime Minister Alexis Tsipras has urged Greeks to reject an international bailout deal, wrecking any prospect of repairing relations with European Union partners before a referendum that could decide Greece's future in Europe. ID:nL8N0ZH0TT
There is scope for the Greek crisis to drive more risk-averse money into gold if it worsens to the point where Greece leaves the euro zone, or if there is contagion in other economies in the bloc, such as Italy, Portugal or Spain, traders said. ID:nL8N0ZG3U8
Silver XAG= rose 0.6 percent to $15.60 an ounce after losing 1.3 percent in the previous session. Palladium XPD= was unchanged at $695.75 and platinum XPT= dropped 0.2 percent to $1,078.24.