* Traders take to sidelines ahead of Friday jobs data
* Palladium seen falling further in 2015 - ABN Amro
* GRAPHIC-Asset returns: http://link.reuters.com/dub25t
(Updates prices; adds comment, second byline, changes dateline,
previous LONDON)
By Marcy Nicholson and Jan Harvey
NEW YORK/LONDON, Sept 2 (Reuters) - Gold eased on Wednesday
as a rebound in stocks and the dollar arrested a four-day rise,
with uncertainty over the timing of a looming U.S. rate hike
limiting price moves ahead of key U.S. non-farm payrolls data on
Friday.
The metal retreated from early highs as global stock indexes
recovered some of their recent losses, drawing support from
reports of brokerage measures in China to invigorate the
country's battered markets. MKTS/GLOB
Gold also came under pressure from the 0.5 percent rise of
the dollar index .DXY . FRX/
Spot gold XAU= was down 0.5 percent at $1,134 an ounce at
2:48 p.m. EDT (1848 GMT), while U.S. gold futures GCv1 for
December delivery settled down 0.5 percent at $1,133.60.
"We have to wait until we actually see the payrolls numbers
this Friday," Capital Economics analyst Simona Gambarini said.
"We don't really expect much movement in the gold price (ahead
of that). Investors are just waiting on the sidelines to see
what the Fed will decide."
Traders remain wary of taking up fresh positions until they
receive more clarity on when the Fed will press ahead with its
first rate hike in nearly a decade.
Low interest rates cut the opportunity cost of holding
non-yielding bullion while also pressuring the dollar.
The Fed has pegged the likelihood of a rate rise to the
strength of U.S. data. The August U.S. non-farm payrolls report
on Friday is being closely watched, Mitsubishi analyst Jonathan
Butler said.
"Attention will inevitably turn to the fact that December is
now looking the most likely for lift-off on rates, and maybe the
market will start to price that in," he said.
Data on Wednesday suggested that labor market momentum
likely remains strong enough for the Fed to consider an interest
rate hike this year. ID:nL1N1180PF
Of the precious metals, palladium XPD= has been the most
volatile and rose 3.4 percent to a session high at $586.50 an
ounce after Tuesday's 5.3 percent tumble.
ABN Amro analyst Georgette Boele said in a note that
palladium prices should drop further this year, forecasting $525
at the end of 2015, though downward pressure was seen easing.
"Autocatalyst demand from emerging markets, especially China
and Brazil, will remain weak. We expect the trend in weaker car
sales in China to continue into the first half of 2016," Boele
said.
Among other precious metals, silver XAG= was up 0.5
percent at $14.64 an ounce and platinum XPT= was up 1 percent
at $1,010.24.