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CORRECTED-PRECIOUS-Gold prices flat ahead of U.S. jobs data

Published 2018-02-01, 05:11 p/m
© Reuters.  CORRECTED-PRECIOUS-Gold prices flat ahead of U.S. jobs data
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(Corrects location of EverBank in paragraph 5 to Jacksonville, Florida, not St. Louis)

* Palladium edges up after hitting lowest since Dec. 18

* GRAPHIC-2018 asset returns: http://tmsnrt.rs/2jvdmXl

By Renita D. Young and Zandi Shabalala

NEW YORK/LONDON, Feb 1 (Reuters) - Gold prices were nearly unchanged on Thursday as markets anticipated U.S. jobs data due at the end of the week for guidance on monetary policy for the remainder of the year.

Spot gold XAU= shed 0.01 percent at $1,344.56 ounce by 1:36 p.m. EST (1836 GMT). It touched $1,332.30 an ounce in the previous session, its lowest since Jan. 23.

U.S. gold futures GCcv1 futures for April delivery settled up $4.80, or 0.4 percent, at $1,347.90 per ounce.

The U.S. Fed held interest rates unchanged on Wednesday but raised its inflation outlook and flagged "further gradual" rate increases. thing that could throw a wrench into the Fed's plans to raise three times this year is wages. Employment has certainly continued to march higher with unemployment dropping, but wages have been sticky," said Chris Gaffney, president of world markets at Jacksonville, Florida-based EverBank.

Stronger-than-expected jobs data, lower unemployment and higher wages would signal strength in the economy, and could in turn strengthen the dollar and pressure gold, Gaffney added.

Gold gained just 3.2 percent in January as the dollar fell to three-year lows against a basket of major currencies. It hit a 17-month peak of $1,366.07 on Jan. 25. .DXY

"We remain somewhat friendly to gold in the short-term. The dollar seems to be adrift, as investors are unsure what direction to push it," said INTL FCStone analyst Edward Meir.

The dollar index inched lower after the Fed signaled its confidence about inflation and growth in the U.S. economy, reinforcing views it will raise rates several times this year. USD/

Inflation worries generally boost gold, which is seen as a safe-haven against rising prices. But expectations that the Fed will raise interest rates to fight inflation make gold less attractive because it does not pay interest.

Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares GLD , fell another 4.1 tonnes on Wednesday, data from the fund showed, cutting its inflow for January to just 3.9 tonnes.

In other precious metals, silver XAG= slipped 0.6 percent to $17.20 per ounce and platinum XPT= fell 0.5 percent to $999.50.

Palladium XPD= was 0.3 percent higher at $1,030.97 per ounce after touching $1,013.72 earlier in the session, its lowest since Dec. 18. The metal is down about 3.5 percent so far this year.

"I wouldn't be surprised to see prices reach $1,000 because demand is strong but its not strong enough for the price to be at $1,100," said Natixis analyst Bernard Dahdah, adding that this was the beginning of a correction for the metal.

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