* Gold down for seventh week in a row
* Strong U.S. jobs number may lead to Sept rate rise - CMC
* Coming up: U.S. nonfarm payrolls at 1230 GMT
(Adds Asian physical demand, updates prices)
By Manolo Serapio Jr
MANILA, Aug 7 (Reuters) - Gold steadied near a 5-1/2-year
low on Friday and was on track to show a loss for the seventh
week in a row, its longest such slump since 1999, ahead of U.S.
data that may determine how soon the Federal Reserve raises
interest rates.
A strong jobs number would fan speculation the Fed will
raise rates next month, which is likely to pull
non-interest-bearing gold to fresh lows.
"If we get a strong jobs number tonight, I suspect that the
market will shift expectations further in favour of September
rather than December," said Ric Spooner, chief market analyst at
CMC Markets in Sydney.
Spot gold XAU= was up 0.3 percent at $1,092.10 an ounce at
0647 GMT. The metal has been trading below $1,100 since
breaching that support in a July 20 rout, sinking as far as
$1,077 on July 24, its weakest since February 2010.
Bullion was down marginally on the week, with a seventh
weekly loss in a row matching a similar losing streak in
May-June 1999.
U.S. gold for December delivery GCcv1 gained 0.1 percent
to $1,091.60 an ounce.
Economists polled by Reuters forecast the U.S. economy added
223,000 jobs in July, the same outcome as June. U.S. job growth
has exceeded 200,000 in 14 of the last 16 months.
A slew of upbeat U.S. economic data, including Thursday's
positive weekly jobless claims, shows "there's not really much
to stop the Fed from increasing rates", Spooner said, adding a
slightly weaker nonfarm figure was unlikely to derail its plans.
The number of Americans filing new applications for
unemployment benefits rose less than expected last week,
suggesting labour market conditions are continuing to tighten.
ID:nL1N10H1FE
"There's not a lot of natural reasons for investors to buy
gold at the moment. The dollar is getting stronger and there's
no real sign of inflation on the horizon with weaker oil prices
and other commodities," Spooner said.
Gold's marking time ahead of the U.S. employment report "may
be the calm before the storm, with probability calling for
another leg lower to the 2010 low of $1,044", according to
technical analysts at ScotiaMocatta.
Gold buyers in Asia were in no hurry, anticipating the
market to weaken further, with premiums in India and Hong Kong
picking up only modestly this week. GOL/AS
Spot platinum XPT= and palladium XPD= remained near
multi-year lows. Platinum was unchanged at $951 an ounce, down
for a fifth week in a row, while palladium gained 0.6 percent to
$598.50 but was down for a second straight week.
Silver XAG= rose 1 percent to $14.72 an ounce.