* Gold retains declines from 3-day losing streak
* U.S. job growth slowed in August; unemployment rate down
* Dollar steadies, European stocks push higher
* GRAPHIC-Asset returns: http://link.reuters.com/dub25t
(Updates prices)
By Jan Harvey
LONDON, Sept 7 (Reuters) - Gold prices edged back towards
their lowest since mid-August on Monday after U.S. payrolls data
failed to provide clarity on the timing of a Federal Reserve
rate hike, and as the dollar steadied against a currency basket.
Spot gold XAU= was down 0.2 percent at $1,120.50 an ounce
at 1157 GMT, while U.S. gold futures GCv1 for December
delivery were down $1.00 an ounce at $1,120.40.
Spot gold ended last week down 1 percent after three
straight days of decline, hitting its lowest in 2-1/2 weeks on
Friday at $1,116.75 an ounce.
Friday's hotly anticipated non-farm payrolls report showed
the U.S. economy added fewer jobs than expected last month,
though the unemployment rate fell to its lowest since 2008.
ID:nL1N11925M
"The number was too good for those who hoped that the Fed
would postpone the rate hike, and too little for those who were
hoping (they'd go ahead with) it. That's why on the gold side,
the market just got stuck," Julius Baer analyst Carsten Menke
said.
"As long as we know the U.S. is on a solid growth path, that
there is no inflation problem, and that eventually there will be
higher bond yields, this remains an environment which is not
liked by the gold market."
Gold prices have fallen more than 5 percent this year,
largely on expectations for a rise in U.S. interest rates, which
would lift the opportunity cost of holding non-yielding bullion
while boosting the dollar, in which it is priced.
The Fed has already indicated that the timing of a hike is
largely data-dependent.
Bullion traders said uncertainty over the timing of a hike
will keep gold under pressure until the Fed meet on Sept. 16-17.
"The first chance of (the Fed implementing a rate hike) will
be at the Fed meeting next week. The uncertainty in this regard
is likely to keep the gold price in check in the run-up to the
meeting," Commerzbank (XETRA:CBKG) said in a note.
Strength in equities also pressured gold, as investors
plumped for assets seen as higher risk. The dollar steadied
after dropping on mixed U.S. employment data. FRX/
Gold prices got little support with the resumption of
trading in key gold consumer China. Premiums on the Shanghai
Gold Exchange were steady at about $4 an ounce on Monday,
indicating stable buying interest.
With the U.S. markets closed for the Labor Day holiday on
Monday, trading is likely to be thin.
Among other precious metals, silver XAG= was down 0.5
percent at $14.50 an ounce, while platinum XPT= was down 0.4
percent at $985.50 an ounce and palladium XPD= was up 0.8
percent at $576.25 an ounce.