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PRECIOUS-Gold struggles near 2-week low ahead of U.S. jobs data

Published 02/10/2015, 11:01 am
Updated 02/10/2015, 11:08 am
© Reuters.  PRECIOUS-Gold struggles near 2-week low ahead of U.S. jobs data
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SINGAPORE, Oct 2 (Reuters) - Gold was languishing near a two-week low on Friday after a five-day losing streak, as investors waited for U.S. nonfarm payrolls data later in the session to gauge when the Federal Reserve would raise rates.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,112.60 an ounce by 0048 GMT, not far from a two-week low of $1,110.75 reached in the previous session.

* Gold has lost nearly 3 percent for the week, its biggest such decline since the week ended July 24, on expectations that the Fed will raise rates this year.

* The yellow metal slid after data on Wednesday showed U.S. private-sector jobs grew robustly in September, bolstering expectations that the nonfarm payrolls report later on Friday would also be strong. ID:nL1N12011G

* Other data on Thursday showing a slowdown in manufacturing activity failed to provide any relief for gold, as traders were reluctant to place big bets ahead of the jobs report. ID:nL1N1210UK

* The Fed has said the timing of the first U.S. rate hike in nearly a decade would be data dependent. Higher rates could dent demand for non-interest-paying gold, while boosting the dollar.

* San Francisco Fed President John Williams on Thursday renewed his call for an interest-rate hike "sometime later this year," citing near-full employment and rapidly rising house prices that may be a sign of excessive economic optimism.

* Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.26 percent to 689.20 tonnes on Thursday. GOL/ETF

* Among other precious metals, palladium XPD= was trading near a three-month high of $679.50 reached in the prior session. It was headed for its fourth straight weekly gain, its longest such winning streak since June-July 2014.

* The metal, chiefly used in catalysts for gasoline engines, was boosted by data showing strong car sales from major automakers. It has also benefited from views that demand for gasoline cars would increase after Volkswagen's emissions scandal raised concerns about diesel engine demand.

* Platinum XPT= , which is used in diesel cars, was on track for its second straight weekly drop, hurt by fears of lower demand from the auto sector.

* For the top stories on metals and other news, click TOP/MTL or GOL

DATA AHEAD (GMT)

1230 U.S. Non-farm payrolls Sep

1400 U.S. Durable goods Aug

1400 U.S. Factory orders Aug

PRICES AT 0048 GMT Metal

Last

Change Pct chg

Spot gold

1112.6

-0.56

-0.05 Spot silver

14.495

0.035

0.24 Spot platinum

903.25

3.25

0.36 Spot palladium

674.22

1.22

0.18 Comex gold

1112.2

-1.5

-0.13 Comex silver

14.505 -0.006

-0.04 Euro

COMEX gold and silver contracts show the most active months

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