Gold heads for 3rd weekly gain; US jobs data eyed

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Gold prices rose on Friday for a third consecutive day, as investors awaited clues from the U.S. nonfarm payroll data later in the day on whether the Federal Reserve would wind down its bullion-supporting monetary stimulus.
FUNDAMENTALS
• Spot gold edged up 0.1 percent to $1,414.89 an ounce by 0029 GMT, after climbing about 1 percent on Thursday as the dollar fell sharply against the yen and the euro on fears of disappointing U.S. jobs data. Gold is heading for a weekly gain of more than 2 percent.
• U.S. gold fell slightly to $1,415.
• A weak reading on the U.S. nonfarm payroll data would prompt the Federal Reserve to continue with the $85 billion monthly bond purchases to support the economy. Such a move would help gold, typically seen as a hedge against inflation.
• The number of Americans filing new claims for unemployment benefits fell last week, pointing to moderate job growth. Still, the improvement in labour market conditions lacks enough vigour to compel the Fed to scale back its expansive monetary stimulus.
• The Indian government may take more steps if needed to curb gold inflows into the country, a senior finance ministry official said on Thursday.
• The comments follow stricter rules announced this week, including a hike in the import duty on gold. India is trying to curb gold imports to reduce its import bill and current account deficit.
• SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.27 percent to 1,007.74 tons on Thursday from 1,010.45 tons on Wednesday.
• Newcrest Mining Ltd, the world’s No. 3 gold miner, plans to write down its asset values by up to $6 billion following the worst slide in gold prices in 30 years and plans to stop producing from high cost operations as it scrambles to protect margins.
MARKET NEWS
• The U.S. dollar rose slightly early on Friday after suffering its biggest one-day decline in three years against the yen.
Precious metals prices 0029 GMT

Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1414.89 1.74 0.12 -15.51
Spot Silver 22.67 0.08 0.35 -25.13
Spot Platinum 1528.24 1.74 0.11 -0.44
Spot Palladium 756.97 -1.75 -0.23 9.39
COMEX GOLD AUG3 1415 -0.8 -0.06 -15.56 2390
COMEX SILVER JUL3 22.62 -0.09 -0.41 -25.38 504
Euro/Dollar 1.3237
Dollar/Yen 97.43

COMEX gold and silver contracts show the most active months
Source: Reuters
Source: Bullion Bulletin

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