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PRECIOUS-Gold falls as risk appetite grows; focus on U.S. jobs data

Published 05/06/2020, 07:41 pm
Updated 05/06/2020, 09:48 pm
© Reuters.
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* U.S. non-farm payrolls data due at 1230 GMT

* Silver faces first weekly decline in five

* $1,670 key support, $1,750 key resistance for gold - analyst

* For an interactive graphic tracking the global coronavirus spread, open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices)

By Eileen Soreng

June 5 (Reuters) - Gold fell and was on track for a third straight weekly decline on Friday, weighed down by gains in riskier assets as investors grew more hopeful of a rebound in the coronavirus-hit global economy.

Spot gold XAU= was down 0.3% at $1,705.73 per ounce at 1140 GMT. U.S. gold futures GCcv1 fell 1.2% to $1,707.30.

Bullion has declined 1.2% so far this week, on track for its biggest fall since the week ending May 1.

"The European Central Bank's move yesterday is supporting risk-taking .... It seems more investors holding gold are switching out to the equity market," said UBS analyst Giovanni Staunovo.

"I still see gold moving in a $1,700-$1,750 range for the time being."

The ECB approved a bigger-than-expected expansion of its stimulus package on Thursday, which added to investors confidence to buy riskier assets. World stocks held their ground near three-month highs. MKTS/GLOB

Investors are now awaiting U.S. nonfarm payrolls data for May at 1230 GMT. Payrolls are seen falling by 8 million after a record 20.537 million plunge in April, according to a Reuters survey. data comes ahead of a two-day policy meeting of the U.S. Federal Reserve next week. The U.S. central bank has injected massive stimulus and cut interest rates to near zero to cushion the blow from the coronavirus pandemic. unprecedented central bank stimulus to bolster economies has also boosted risk appetite, curbing some demand for safe-haven assets.

"Gold prices have levelled-off in the past few weeks ... We see $1,670 per ounce as the key support and $1,750 as key resistance, (a) break on either side will provide a clear guidance," said ANZ commodity strategist Soni Kumari.

Elsewhere, palladium XPD= edged 0.1% higher to $1,933.70 per ounce, while platinum XPT= dropped 0.8% to $830.18.

Silver XAG= was 0.6% lower at $17.61, and was set for its first weekly decline in five.

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