* Consolidation seen, bullish sentiment remains
* Gold in $1,325-$1,340 range -technicals []
* Coming up: U.S. non-farm payrolls September; 1230 GMT
By Rujun Shen
SINGAPORE, Oct 8 (Reuters) - Spot gold was steady on
Friday, after staging its biggest daily loss in two months in
the previous session triggered by a rebound in the dollar, as
the market awaits a key U.S. payrolls data for indications on
the state of the economy.
New U.S. jobless claims fell to a near three-month low,
data showed, shoring up the U.S. dollar. Still, it was not
strong enough to diffuse speculation on more monetary easing
from the Federal Reserve. [] []
Investors are eyeing the all-important U.S. non-farm
payrolls for September due later in the day, which were
expected to be unchanged, according to economists polled by
Reuters. []
"Consolidation is coming. We've been expecting some
correction for some time," said a Hong Kong-based dealer.
"People are using the non-farm payrolls data today as an excuse
to sell."
"But the bullish trend is still here. We still have low
interest rates, and the economy is not stable -- the old
story."
Expectations the Fed will pour more money into the economy
and worries about inflationary pressure looming ahead have
attracted investors to seek safe haven in gold.
Central banks are expected to be net buyers of gold in 2011
for the first time in nearly 20 years, the World gold Council
said on Thursday.
Spot gold <XAU=> was little changed at $1,333.20 an ounce
by 0303 GMT, off the $1,364.6 peak hit on Thursday. Gold is set
for a 1.2 percent rise from a week earlier, the fourth
consecutive week of gains.
Gold may trade in a $1,325 and $1,340 range for one session
before dropping towards $1,315 an ounce, as a sharp fall is
generally followed by a mild consolidation, said Wang Tao, a
Reuters market analyst.
For a 24-hour gold technical outlook, see:
http://graphics.thomsonreuters.com/WT/20100810075254.jpg
Adding to the bullish sentiment, AngloGold Ashanti
<ANGJ.J>, the world's third-largest gold miner, said it has
eliminated its hedge book, and is bullish on gold prices for
next year. []
China's financial markets returned after a week-long
holiday. The 99.99 grade gold on the Shanghai Gold Exchange
<XAU9999=SGEX> rose about 1.5 percent to 286.35 yuan ($42.79) a
gram.
Spot gold hit record highs in four out of five sessions
when China was out, and rose about two percent during the
period.
"Gold prices in China are a bit reluctant to chase the
record-high prices because the yuan has been appreciating while
the dollar has been falling," said Wu Jun, an analyst at
Shanghai CIFCO Futures.
"Gold priced in yuan is not as strong as gold priced in the
dollar."
The fourth quarter traditionally marks strong demand for
gold, in jewellery and investment, Wu said. Investment demand
may rise faster, as investors seek new channels after Beijing
tries to squeeze speculation out of the red hot property
market.
Spot silver <XAG=> fell to a two-day low of $22.31 an
ounce, and was trading at $22.56, poised for a 2.3 percent
weekly gain.
The Relative Strength Index on silver, or RSI, dropped to
just below 70, from above 70 previously, a sign of an
overbought market.
Precious metals prices at 0303 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1333.20 0.55 +0.04 21.68
Spot Silver 22.56 0.04 +0.18 34.05
Spot Platinum 1696.50 4.90 +0.29 15.64
Spot Palladium 586.00 6.85 +1.18 44.51
TOCOM Gold 3535.00 -84.00 -2.32 8.47
58522
TOCOM Platinum 4508.00 -84.00 -1.83 2.90
13249
TOCOM Silver 59.90 -2.30 -3.70 15.86
1588
TOCOM Palladium 1557.00 -21.00 -1.33 33.65
554
Euro/Dollar 1.3956
Dollar/Yen 82.26
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Manash Goswami)
