MANILA, Aug 6 (Reuters) - Gold struggled to pull away from a 5-1/2-year low early on Thursday after more upbeat U.S. economic data bolstered expectations the Federal Reserve could lift interest rates as soon as next month.
FUNDAMENTALS
* Spot gold XAU= was flat at $1,084.66 an ounce by 0029 GMT. The metal has mostly stayed below $1,100 since falling below that key support level in a late July rout that pushed it as far as $1,077, its weakest since February 2010.
* U.S. gold for December delivery GCcv1 slipped 0.2 percent to $1,083.70 an ounce.
* U.S. private job growth slowed in July, but a surge in services industry activity to a near-decade high suggested solid economic momentum that strengthens the case for a U.S. interest rate hike this year, the first since 2006.
* Investors will be eyeing the U.S. nonfarm payrolls next due out on Friday, with economists polled by Reuters predicting the July number to be the same as June's 223,000 increase.
* Barrick Gold Corp ABX.TO , the world's biggest gold miner by output, said it is making big strides toward an ambitious debt reduction target, announcing a financing deal for its Dominican mine, the planned sale of a suite of U.S. assets and a 60 percent cut to its dividend.
* The decline in holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, continued on Wednesday, to 21.47 million ounces, the lowest since September 2008.
MARKET NEWS
* The dollar held at two-month highs versus the yen, having risen against some currencies on new data supporting the case for a hike in U.S. interest rates next month.
* U.S. crude futures steadied above $45 a barrel, near multi-month lows, following a jump in U.S. gasoline inventories as the U.S. peak motor fuel demand season starts to wrap up.
DATA AHEAD (GMT)
0600 Germany
Industrial orders
June
1230 U.S.
Weekly jobless claims