* Gold had longest weekly losing streak since 1999
* Any delay in rate hike expectations won't fuel gold rally
-HSBC
(Updates prices)
By Manolo Serapio Jr
MANILA, Aug 10 (Reuters) - Gold ticked higher but stayed
within striking distance of a 5-1/2-year low on Monday, after
solid U.S. job gains in July suggested the Federal Reserve could
raise interest rates as early as next month.
U.S. nonfarm payrolls increased 215,000 in July, less than
the 223,000 rise that economists had expected, but still seen in
line with a tightening labour market. Payrolls data for May and
June was revised to show 14,000 more jobs created than
previously reported. ID:nLNN7JEBEB
Spot gold XAU= was up 0.3 percent at $1,096.10 an ounce by
0622 GMT, recovering from an early low of $1,089.40.
Gold managed to eke out marginal gains on Friday after the
jobs data was released, with the smaller-than-forecast number
spurring some hopes that the Fed could hike rates later than
September.
"While a delay in rate hike expectations may ease some of
the near-term pressure on gold, it does not mean prices would
rally from current levels given expectations that the Fed
will eventually hike rates," said HSBC analyst James Steel.
A looming U.S. rate rise, the first since 2006, had weighed
on non-interest yielding gold, pulling more funds to the dollar.
The greenback stayed close to its highest level since April
against a basket of currencies. .DXY
The metal fell for a seventh week in a row last week, its
longest such retreat since 1999, having struggled to pull away
from a 5-1/2-year trough of $1,077 reached during a late rout in
July.
U.S. gold for December delivery GCcv1 gained 0.2 percent
to $1,096 an ounce.
Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, slipped further, hitting 21.47
million ounces on Friday, the lowest since September 2008.
GOL/ETF
Top gold consumer China is under growing pressure to further
stimulate its economy after disappointing data over the weekend
showed another heavy fall in factory-gate prices and a surprise
slump in exports. ID:nL3N10K02J
China's foreign exchange reserves, the world's largest, fell
by $42.5 billion in July to $3.65 trillion, the sharpest monthly
drop since March amid signs of capital outflows. The value of
China's gold reserves dropped to $59.24 billion from $62.4
billion. ID:nL3N10I2WL
Spot platinum XPT= rose 0.7 percent to $966 an ounce and
palladium XPD= eased 0.3 percent to $596, both still close to
last week's multi-year lows. Silver XAG= gained 0.3 percent to
$14.88 an ounce.