* Bullion dips for second day as U.S. jobs data awaited
* Higher dollar also hurts gold
* China markets closed for public holiday
* Coming up: U.S. Weekly jobless claims at 1230 GMT
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Sept 3 (Reuters) - Gold added to overnight losses
on Thursday, hurt by a stronger dollar and as investors awaited
a key U.S. jobs report to gauge the timing of a Federal Reserve
rate hike.
Spot gold XAU= had eased 0.1 percent to $1,132.45 an ounce
by 0637 GMT, after dropping 0.5 percent on Wednesday. U.S. gold
GCcv1 slipped about $1 to $1,132.20.
U.S. private payrolls data on Wednesday suggested that
labour market momentum likely remained strong enough for the Fed
to consider an interest rate hike this year. The nonfarm
payrolls report on Friday will be eyed for more clues.
"Gold is awaiting the payroll data for indications of Fed
intentions at the September FOMC meeting. So the market may move
sideways until the numbers are released," said HSBC analyst
James Steel, referring to the Fed's Federal Open Market
Committee.
The U.S. central bank has pegged the likelihood of a rate
increase to the strength of economic data. A strong jobs report
could prompt the Fed to increase rates sooner than later.
Bullion traders remain wary of taking up fresh positions
until they receive more clarity on whether the Fed will raise
rates at its next meeting on Sept. 16-17.
Low interest rates cut the opportunity cost of holding
non-yielding bullion.
Also weighing on bullion was the absence of Chinese buyers.
Markets in China, a major gold consumer, are closed on Thursday
and Friday for public holidays.
Tepid Chinese demand during the holidays will also keep gold
prices capped, along with the uncertainty over a U.S. rate hike,
HSBC's Steel said.
The dollar climbed against the euro and yen on Thursday as
global investors tentatively stepped back into riskier equities,
hurting bullion.
The technical picture for gold looks bearish with near-term
support at $1,117, ScotiaMocatta analysts said.
"We are bearish gold so long as it trades below the recent
high of $1,170," they said.
Other precious metals were also under pressure on Thursday.
Palladium XPD= and platinum XPT= were down about 0.3
percent. Silver XAG= fell 0.5 percent.
PRICES AT 0637 GMT
Metal Last Change Pct chg
Spot gold 1132.45 -1.2 -0.11
Spot silver 14.62 -0.08 -0.54
Spot platinum 1009.5 -3 -0.3
Spot palladium 580.5 -2 -0.34
Comex gold 1132.2 -1.4 -0.12
Comex silver 14.645 -0.022 -0.15
Euro 1.1227
DXY 95.925
COMEX gold and silver contracts show the
most active months