MANILA, Feb 5 (Reuters) - Gold, trading near its highest
since October on Friday, is on track to score its strongest
weekly gain in a month as the U.S. dollar is pressured by
growing doubts that the Federal Reserve can stick to its
interest rate hike campaign.
FUNDAMENTALS
* Spot gold XAU= was flat at $1,154.20 an ounce by 0019
GMT, after peaking at $1,157.20 on Thursday, its highest since
Oct. 29.
* Gold has gained more than 3 percent so far this week, on
course for its biggest such increase since early January.
* U.S. gold for April delivery GCcv1 eased 0.2 percent to
$1,154.70 an ounce.
* A shaky global economy from China to Europe and similarly
volatile financial markets elsewhere have lifted buying interest
in gold. The momentum increased this week after a key Fed
official said there is a need to take into consideration tighter
financial conditions and the weakening global outlook in framing
U.S. monetary policy.
* That spurred gold bulls, thinking it would be tough for
the Fed to raise interest rates again this year after hiking
them in December for the first time in nearly a decade.
* Non-interest bearing gold is quite sensitive to U.S.
monetary policy. Its recent upturn has prompted some analysts to
have a more positive price outlook on the metal many had thought
was bound to fall below $1,000 an ounce this year as the U.S.
lifts rates.
* Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, continued to rise along with
the gold price, reaching 22.3 million ounces on Thursday, the
most since late October.
* Focus on Friday turns to the U.S. employment report and
analysts say a stronger-than-expected reading could aid the
dollar and stall gold's rally.
* Economists polled by Reuters are looking for U.S. nonfarm
payrolls to increase by 190,000 in January, after rising by
292,000 in December. The unemployment rate is forecast to remain
at a 7-1/2-year low of 5 percent. ECONUS
* Gold could face resistance around $1,160-$1,165, technical
analysts say.
* Canada's Centerra Gold Inc CG.TO has received the
go-ahead from lawmakers in Mongolia to mine the Gatsuurt deposit
after a five-year delay, as that resource-rich country looks to
bolster its economic activity and gold reserves.
* For the top stories on metals and other news, click
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MARKET NEWS
* Asian equities edged up on Friday, taking early
inspiration from an overnight rise on Wall Street, while the
dollar wobbled ahead of the closely watched U.S. jobs report.
MKTS/GLOB
* U.S. crude oil futures were steady as liquidity faded
ahead of the Lunar New Year holiday across large parts of Asia.
O/R
DATA AHEAD (GMT)
0700 Germany Industrial orders Dec
0745 France Trade data Dec
1330 U.S. Nonfarm payrolls Jan
1330 U.S. Unemployment rate Jan
1330 U.S. International trade Dec