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PRECIOUS-Gold holds gains above $1,230 ahead of U.S. jobs data

Published 01/04/2016, 11:59 am
Updated 01/04/2016, 12:00 pm
© Reuters.  PRECIOUS-Gold holds gains above $1,230 ahead of U.S. jobs data
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SINGAPORE, April 1 (Reuters) - Gold held steady above $1,230 an ounce on Friday, after posting its biggest quarterly rise in nearly 30 years on waning expectations of U.S. rate hikes, with investors waiting for U.S. non-farm payrolls data for more cues.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,232.10 an ounce by 0046 GMT, following a 0.6-percent increase overnight.

* With a 16-percent jump, gold on Thursday recorded its best quarterly performance since 1986 as global growth concerns diminished expectations of further U.S. interest rate hikes this year. A tumble in the global stock market and the U.S. dollar triggered safe-haven demand for the metal.

* Bullion is sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets, while boosting the dollar.

* Federal Reserve Chair Janet Yellen said this week that the U.S. central bank should proceed only cautiously as it looks to raise interest rates.

* New York Federal Reserve President William Dudley on Thursday said he agrees with Yellen's views that the U.S. central bank should proceed cautiously, particularly given risks from slow growth abroad. All eyes are now on U.S. non-farm payrolls data due later in the session that will be watched for clues about the labour market and the economy.

* U.S. payrolls are expected to grow by 205,000, according to a Reuters poll. A stronger number could revive expectations of higher U.S. rates, strengthen the dollar and hurt gold.

* Global manufacturing surveys due on Friday will also be in focus.

* The U.S. Mint sold 38,000 ounces of American Eagle gold coins in March, down 54.5 percent from the previous month, according to the latest data. India's gold demand in the March quarter is set to drop by about two-thirds from a year ago to its lowest in seven years, as higher prices and a strike by jewellers curbed sales in the world's second-biggest consumer. Higher gold prices curbed demand for the precious metal in Asia this week, with premiums in several major markets taking a hit, traders in the top consuming region said. For the top stories on metals and other news, click TOP/MTL or GOL

DATA AHEAD (GMT)

0100 China Official manufacturing PMI Mar

0100 China Official non-manufacturing PMI Mar

0145 China Caixin manufacturing PMI final Mar

0200 Japan Nikkei manufacturing PMI Mar

0755 Germany Markit/BME manufacturing PMI Mar

0800 Euro zone Markit manufacturing PMI final Mar

0900 Euro zone Unemployment rate Feb

1230 U.S. Nonfarm payrolls Mar

1230 U.S. Unemployment rate Mar

1400 U.S. Construction spending Feb

1400 U.S. ISM manufacturing PMI Mar

PRICES AT 0046 GMT Metal

Last

Change Pct chg

Spot gold

1232.1

0.15

0.01 Spot silver

15.431

0.015

0.1 Spot platinum

975.05

2.55

0.26 Spot palladium 562.85

0.85

0.15 Comex gold

1234.2

-1.4

-0.11 Comex silver

15.445 -0.019

-0.12

COMEX gold and silver contracts show the most active months

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