MANILA, Feb 5 (Reuters) - Gold, trading near its highest since October on Friday, is on track to score its strongest weekly gain in a month as the U.S. dollar is pressured by growing doubts that the Federal Reserve can stick to its interest rate hike campaign.
FUNDAMENTALS
* Spot gold XAU= was flat at $1,154.20 an ounce by 0019 GMT, after peaking at $1,157.20 on Thursday, its highest since Oct. 29.
* Gold has gained more than 3 percent so far this week, on course for its biggest such increase since early January.
* U.S. gold for April delivery GCcv1 eased 0.2 percent to $1,154.70 an ounce.
* A shaky global economy from China to Europe and similarly volatile financial markets elsewhere have lifted buying interest in gold. The momentum increased this week after a key Fed official said there is a need to take into consideration tighter financial conditions and the weakening global outlook in framing U.S. monetary policy. That spurred gold bulls, thinking it would be tough for the Fed to raise interest rates again this year after hiking them in December for the first time in nearly a decade.
* Non-interest bearing gold is quite sensitive to U.S. monetary policy. Its recent upturn has prompted some analysts to have a more positive price outlook on the metal many had thought was bound to fall below $1,000 an ounce this year as the U.S. lifts rates.
* Holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, continued to rise along with the gold price, reaching 22.3 million ounces on Thursday, the most since late October.
* Focus on Friday turns to the U.S. employment report and analysts say a stronger-than-expected reading could aid the dollar and stall gold's rally.
* Economists polled by Reuters are looking for U.S. nonfarm payrolls to increase by 190,000 in January, after rising by 292,000 in December. The unemployment rate is forecast to remain at a 7-1/2-year low of 5 percent. ECONUS
* Gold could face resistance around $1,160-$1,165, technical analysts say. Canada's Centerra Gold Inc CG.TO has received the go-ahead from lawmakers in Mongolia to mine the Gatsuurt deposit after a five-year delay, as that resource-rich country looks to bolster its economic activity and gold reserves.
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MARKET NEWS
* Asian equities edged up on Friday, taking early inspiration from an overnight rise on Wall Street, while the dollar wobbled ahead of the closely watched U.S. jobs report. MKTS/GLOB
* U.S. crude oil futures were steady as liquidity faded ahead of the Lunar New Year holiday across large parts of Asia. O/R
DATA AHEAD (GMT)
0700 Germany
Industrial orders
Dec
0745 France
Trade data
Dec
1330 U.S.
Nonfarm payrolls
Jan
1330 U.S.
Unemployment rate
Jan
1330 U.S.
International trade
Dec