PRECIOUS-Gold struggles as dollar firms ahead of U.S. jobs data

Published 2016-05-05, 08:53 p/m
© Reuters.  PRECIOUS-Gold struggles as dollar firms ahead of U.S. jobs data
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SINGAPORE, May 6 (Reuters) - Gold looked likely to extend
losses to a fifth straight session on Friday as the dollar
rebounded ahead of U.S. non-farm payrolls data later in the
session.

FUNDAMENTALS
* Spot gold XAU= was little changed at $1,276.80 an ounce
by 0041 GMT after four days of losses.
* The metal has closed lower every session this week despite
hitting a 15-month top of $1,303.60 on Monday.
* Gold is down 1.3 percent for the week, its biggest weekly
drop in six though the direction could change depending on U.S.
jobs data later.
* The dollar rose to a one-week high against a basket of
major currencies on Thursday after sliding to a 15-month low
this week as traders closed out profitable bets against the
greenback before the U.S. payrolls report. USD/
* Investors are eyeing U.S. economic data to gauge the
Federal Reserve's outlook on monetary policy.
* The Fed raised rates for the first time in a decade in
December from near zero but has since stood pat, in part because
of global economic uncertainty.
* A strong payrolls numbers could prompt the Fed to raise
rates sooner than later.
* Economists polled by Reuters forecast U.S. employers
likely added 202,000 workers in April following a 215,000
increase in March with the jobless rate holding at 5.0 percent.
* Gold is sensitive to interest rates and returns on other
assets as rising rates lift the opportunity cost of holding
non-yielding bullion.
* Assets in SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, rose 0.47 percent to 829.44 tonnes on
Thursday to the highest in over two years. GOL/ETF
* Silver demand hit a record high last year as increased
buying by the coin and bar, jewellery and photovoltaic sectors
offset weakness in industrial demand, a Silver Institute report
showed on Thursday.
* Soaring silver prices are changing the market's 2016
landscape as bargain-hunting coin buyers step to the sidelines,
and futures and options participants take the reins, said Erica
Rannestad, a senior analyst at GFMS.
* For the top stories on metals and other news, click
TOP/MTL or GOL

MARKET NEWS
* U.S. stocks ended steady on Thursday as a mixed quarterly
earnings season winds down, but Treasury yields fell to two week
lows as investors hedged positions ahead of the monthly U.S.
government employment report due on Friday. MKTS/GLOB

DATA AHEAD (GMT)
1230 U.S. Nonfarm payrolls Apr
1230 U.S. Unemployment rate Apr

PRICES AT 0041 GMT
Metal Last Change Pct chg

Spot gold 1276.8 -0.86 -0.07
Spot silver 17.35 0.024 0.14
Spot platinum 1056.99 -0.75 -0.07
Spot palladium 597 -0.05 -0.01
Comex gold 1279 6.7 0.53
Comex silver 17.395 0.068 0.39

COMEX gold and silver contracts show the
most active months

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