* Bullion seen in tight range ahead of Friday's U.S.
payrolls
* Greenback loses ground against Euro
* U.S. weekly jobless claims rise less than expected
(Updates prices; adds comment, byline, NEW YORK dateline)
By Chris Prentice and Clara Denina
NEW YORK/LONDON, Aug 6 (Reuters) - Gold edged higher on
Thursday, supported by the retreating U.S. dollar and a tumble
in global equities as traders awaited U.S. employment data seen
as key to determining when the Federal Reserve may raise
interest hikes.
U.S. non-farm payrolls data are due on Friday and economists
polled by Reuters predict employment in July increased at the
same pace as June's 223,000 rise. USNFAR=ECI
Spot gold XAU= was up 0.5 percent at $1,090.11 an ounce by
1759 GMT (1:59 p.m. EST). The metal breached important technical
support at $1,100 after a deep rout in late July pushed it as
low as $1,077, its weakest since February 2010.
U.S. gold for December delivery GCcv1 rose 0.4 percent to
settle at $1,090.10 an ounce.
The dollar .DXY was down against a basket of major
currencies. Weak earnings dragged stocks lower. MKTS/GLOB
"We're seeing a mild consolidation rally," said Bill
O'Neill, co-founder of commodities investment firm LOGIC
Advisors in New Jersey.
"The dollar has lost a little ground and we have nervousness
surrounding equities."
Investors have abandoned bullion during a broad commodities
sell-off and on expectations that the Fed may raise interest
rates as early as next month.
The looming rise in U.S. rates dims the appeal of
non-interest yielding gold, instead pulling more funds towards
the dollar.
Data on Thursday showed the number of Americans filing new
applications for unemployment benefits rose less than expected
last week. ID:nL1N10H1FE
Expectations that the Fed could increase rates at its next
policy meeting in September gained ground this week after
Atlanta Federal Reserve President Dennis Lockhart said only a
"significant deterioration" in the U.S. economy would make him
not support a rate rise next month. ID:nL1N10F25P
But Fed Governor Jerome Powell said policymakers had not yet
decided whether to raise rates next month, adding that more
recent employment data had been mixed. ID:nL1N10G0YJ
Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell to 21.47 million ounces
on Wednesday, the lowest since September 2008. GOL/ETF
"In the medium term, with rising bond yields, EM (emerging
markets) currencies collapsing, no safe haven demand and with
the dollar potentially going higher on U.S. rate expectations,
there is no gold-friendly news out there," Saxo Bank senior
manager Ole Hansen said.
In other metals, spot palladium XPD= gained 1.1 percent to
$597.25 an ounce, as platinum XPT= rose 0.4 percent to $951
per ounce, not far from a 6-1/2 year low hit earlier in the
week. Silver XAG= was up 1 percent at $14.67 an ounce.