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PRECIOUS-Gold up on weaker dollar ahead of US jobs data; eyes 2nd weekly gain

Published 05/08/2016, 04:50 pm
© Reuters.  PRECIOUS-Gold up on weaker dollar ahead of US jobs data; eyes 2nd weekly gain
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* U.S. nonfarm payrolls data due at 1230 GMT

* Gold seen retesting resistance at $1,368 - technicals (Updates prices)

By Sethuraman N R

Aug 5 (Reuters) - Gold edged up on Friday as the dollar weakened ahead of the U.S. jobs data due later in the day, and the metal remained on course for a second straight weekly gain.

Spot gold XAU= was up 0.2 percent at $1,363.36 an ounce by 0633 GMT. It ended 0.2 percent higher at $1,360.80 on Thursday and has risen about 1 percent so far this week.

U.S. gold GCcv1 rose 0.2 percent to $1,370 an ounce.

The dollar index .DXY , which measures the greenback's value against a basket of six major currencies, fell 0.1 percent to 95.669.

People are just waiting for cues on interest rate hike, especially from Friday's nonfarm payrolls data, said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

Economists polled by Reuters are looking for U.S. nonfarm employment to have risen by 180,000 in July. The official payrolls numbers are due at 1230 GMT on Friday.

The number of Americans filing for unemployment benefits unexpectedly rose last week, while renewed job cuts in the energy sector boosted layoffs announced by U.S.-based employers in July. (jobs) data will point to some optimistic economic forecast. Investors will have more speculations on earlier-than-expected rate hike," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.

Spot gold may retest a resistance at $1,368 per ounce, as it has approached this barrier again, according to Reuters technical analyst Wang Tao. shares rose on Friday following global stock markets after the Bank of England (BoE) launched a larger-than-expected post-Brexit stimulus package that sent the British pound tumbling. MKTS/GLOB

The BoE cut interest rates to next to nothing on Thursday and unleashed billions of pounds of stimulus to cushion the economic shock from Britain's vote to leave the European Union. a lot of money in the market (after BoE easing). So, the downside for gold price is limited and it'll be higher in the next few months," a Tokyo-based gold trader said.

Holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, rose 0.37 percent to 973.21 tonnes on Thursday. GOL/ETF

Among other precious metals, spot palladium XPD= fell for a third straight session. It was down 0.1 percent at $703.05.

Spot platinum XPT= was down about 0.1 percent at $1,157.25, while spot silver XAG= edged up 0.4 percent to $20.36 per ounce.

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