* U.S. nonfarm payroll data due later on Friday
* Dollar index steady near two-month peak
* Platinum hits two-month trough
(Updates prices)
By Koustav Samanta and Vijaykumar Vedala
BENGALURU, June 3 (Reuters) - Gold was nearly unchanged on
Friday but headed for a fifth consecutive weekly decline, as the
dollar and Asian stocks held steady and the market awaited U.S.
nonfarm payroll data.
Investors remained cautious ahead of the U.S. labour data, a
strong reading of which could push the Federal Reserve to hike
interest rates sooner rather than later - move that would be
bearish for non-interest bearing gold. MKTS/GLOB
Bullion was little affected in the previous session with the
European Central Bank keeping its rates unchanged.
"A good jobs figure could help cement the case in investors'
minds for a June or July Fed rate hike. This would likely weaken
gold and the $1,200 an ounce level could be tested," said HSBC
analyst James Steel.
"A hard break may be only temporary as long term the outlook
for gold is positive," Steel added, however.
Spot gold XAU= was nearly flat at $1,211.40 per ounce at
0630 GMT. It touched a low of $1,206.60 earlier in the session
and remained on track for its fifth straight weekly loss.
U.S. gold GCcv1 was up 0.1 percent at $1,213.90.
The dollar index .DXY held near a two-month peak, while
Asian shares outside Japan .MIAPJ0000PUS advanced 0.5 percent.
USD/ MKTS/GLOB
Gold, which has gained about 14 percent so far this year,
has been under pressure the past couple of weeks as comments
from senior U.S. central bank officials, including chief Janet
Yellen, boosted expectations of an imminent rate rise.
Spot gold may consolidate further in a range of
$1,205-$1,219 per ounce, as suggested by a Fibonacci retracement
analysis, Reuters technical analyst Wang Tao said. haven't seen a bottom of gold yet and $1,200 has been
holding well," said Brian Lan, managing director at
Singapore-based gold dealer GoldSilver Central.
"Depending on data tonight we will see how the market
closes. If it closes above $1,200, then next week will be
critical with news from Yellen expected," Lan said.
Yellen is due to speak on Monday, the last chance for the
Fed to communicate with markets before it begins a blackout
period ahead of its policy meeting on June 14-15.
Among other precious metals, spot platinum XPT= was up 0.2
percent at $955 an ounce. It touched $950 an ounce earlier in
the day, its lowest since April 8.
Spot silver XAG= was also on track for a fifth straight
weekly decline. Spot palladium XPD= looked set to finish
nearly flat on the week, after dropping in the previous four.