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PRECIOUS-Gold steadies on trade optimism ahead of U.S. jobs data

Published 07/12/2019, 12:00 am
© Reuters.  PRECIOUS-Gold steadies on trade optimism ahead of U.S. jobs data
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(Updates prices)

* U.S. non-farm payrolls data due at 1330 GMT

* Gold still on track for second weekly gain

* Silver, platinum set to dip after 3 straight weeks of gains

* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

By Karthika Suresh Namboothiri

Dec 6 (Reuters) - Gold eased on Friday as risk appetite improved after U.S. President Donald Trump said trade talks with Beijing were making progress, while markets awaited U.S. jobs data for signs on the health of the U.S. economy.

Spot gold XAU= was muted at $1,475.90 per ounce as of 1239 GMT, but was set to be up nearly 0.8% on the week, marking a second week of gains.

U.S. gold futures GCcv1 eased 0.1% to $1,480.90 per ounce.

"...The hawk money is still definitely in risk assets, which is weighing on gold," said Mitsubishi analyst Jonathan Butler.

"If the U.S. non-farm payrolls data comes above expectations, we could probably see further pressure on gold. If it misses expectations, gold could shoot higher; definitely some potential for volatile trading later today."

European shares edged higher as comments from Trump that trade talks with China were "moving right along" injected some calm into financial markets after a tumultuous week. .EU

Completion of a phase one deal between the world's two biggest economies had been initially expected in November, ahead of a new round of U.S. tariffs set to kick in on Dec. 15, covering about $156 billion of Chinese imports.

Chinese officials have indicated that existing tariffs must come off as part of an interim deal. ahead, the market will focus on the U.S. Federal Reserve's meeting on Tuesday and Wednesday next week.

The U.S. central bank is expected to keep interest rates on hold at 1.50-1.75% FEDWATCH .

"Although the Fed will remain on hold next week, the headline data will significantly impact the tone of the meeting statement language and Fed Chair Powell's press conference and could set the timbre for Fed policy outlook into 2020," AxiTrader market strategist Stephen Innes said in a note.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.

Amongst other precious metals, silver XAG= was unchanged at $16.95 per ounce and platinum XPT= gained 0.3% to $899.48. Both metals were set to drop for the first time in four-weeks.

Palladium XPD= dropped 0.4% to $1,865.37 an ounce on Friday, but was on track to extend gains for a third consecutive week.

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