MANILA, Aug 7 (Reuters) - Gold steadied near a 5-1/2-year
low on Friday, remaining on track to stretch its weekly losses
to a seventh week, its longest such slump since 1999, ahead of
key U.S. data that may determine how soon the Federal Reserve
raises interest rates.
FUNDAMENTALS
* Spot gold XAU= was flat at $1,088.96 an ounce by 0025
GMT. The metal has been trading below $1,100 since breaching
that support level in a July 20 rout, sinking as far as $1,077
on July 24, its weakest since February 2010.
* Bullion is down 0.5 percent for the week, marking its
seventh weekly loss in a row and matching a similar streak in
May-June 1999.
* U.S. gold for December delivery GCcv1 slipped 0.1
percent to $1,088.70 an ounce.
* The number of Americans filing new applications for
unemployment benefits rose less than expected last week,
suggesting labour market conditions are continuing to tighten.
ID:nL1N10H1FE
* That further strengthens the case for the Fed to raise
interest rates this year for the first time since 2006, weighing
on non-interest yielding gold. Analysts say that rate hike could
come as soon as Fed policymakers meet next month.
* The key may be the U.S. nonfarm payrolls data due later in
the day. Economists polled by Reuters show the U.S. economy
added 223,000 jobs in July, the same pace as June.
* Expectations that the Fed could increase rates next month
grew louder this week after Atlanta Federal Reserve President
Dennis Lockhart added his voice to that possibility, saying only
a "significant deterioration" in the U.S. economy would make him
not support a rate hike in September.
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MARKET NEWS
* Asian shares dropped, on track for a weekly loss,
following Wall Street lower as caution reigned ahead of U.S.
employment data. The dollar steadied against the euro and yen.
MKTS/GLOB USD/
DATA AHEAD (GMT)
0600 Germany Trade data June
0645 France Trade data June
1230 U.S. Nonfarm payrolls July
1230 U.S. Unemployment rate July