* Gold up on bargain hunting; jewellers
* For technical on gold, click []
* Coming Up: U.S. non-farm payrolls; 1230 GMT
(Updates prices, activity in physical market)
By Lewa Pardomuan
SINGAPORE, Aug 6 (Reuters) - Gold firmed on Friday and was
on track for its biggest weekly gain since June ahead of the
release of U.S. payrolls data, while purchases from jewellers
and investors in Asia stirred up the physical market.
Some refiners in Hong Kong were churning out more gold bars
after China said this week it would allow more banks to import
and export gold as domestic demand gains, and dealers saw
steady festive demand from India and Indonesia. <GOLD/ASIA1>
Gold <XAU=> added $3.70 to $1,196.80 an ounce by 0558 GMT
after rising on Thursday on a weaker dollar and as rising wheat
prices stoked fears of inflation, boosting the metal's safe
haven appeal.
For a graphic of the 24-hr gold technical outlook, click:
http://graphics.thomsonreuters.com/WT/20100608085755.jpg
"We do see buying from Indonesia but Thailand is not around.
Indian demand is also very good but we are short of stocks,"
said a dealer in Singapore, who quoted premiums for gold bars
steady at 80 cents to the spot London prices.
Indonesian jewellers are stocking before the Ramadan
fasting month in August, while demand in top consumer India
picks up during the festive season, which starts with Raksha
Bandhan on Aug 24 and extends through November.
Bargain hunters also plucked the price from an intraday low
before the U.S. data, which could paint a bleak picture of the
economy and could spur a rally in gold prices.
"Everybody is waiting for tonight," said Ronald Leung,
director of Lee Cheong Gold Dealers in Hong Kong."Then after
that, you will see next whether the Fed will issue bonds. Let's
see how the economy goes. Is it worsening?"
The fixed income market was abuzz with talk the Federal
Reserve would embark on another bond-buying programme to ensure
interest rates remain at their current low levels for some
time, thus making gold a more attractive investment.
Economists forecast a loss of 65,000 jobs in July following
a fall of 125,000 in June.
Thinly-traded silver <XAU=> ignored a drop in holdings in
iShares Silver Trust. []
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said its holdings rose to 1,282.746 tonnes
by August 5 from 1,281.834 tonnes on Aug 4 -- the first gains
since mid-July. []
U.S. gold futures for December delivery <GCZ0> hardly
changed at $1,199 an ounce.
Cash and U.S. gold futures roared to a record high in June
on worries the debt crisis in Europe was spreading and the U.S.
economy was slowing.
"Physical demand is quite strong in the last few days, and
we still have a lot of buying around from China, Taiwan and
elsewhere," said a dealer in Hong Kong.
"The premiums for gold bars are at $1.50 and I think
physical buyers will still be around until the price goes back
to $1,200," he added.
Analysts say China's moves to free up its gold market open
the way for foreign players and local banks to tap growing
demand for the precious metal, offering citizens a more
attractive investment and promising to boost the country's
clout over global prices. []
The dollar was on the defensive and Japan stocks fell after
weak U.S. jobless claims figures heightened worries that
Friday's payroll data could paint a bleak picture of the U.S.
economic recovery. []
Precious metals prices at 0558 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1196.80 3.70 +0.31 9.23
Spot Silver 18.36 0.05 +0.27 9.09
Spot Platinum 1565.25 -1.50 -0.10 6.70
Spot Palladium 493.25 1.05 +0.21 21.64
TOCOM Gold 3324.00 8.00 +0.24 1.99
28270
TOCOM Platinum 4377.00 -11.00 -0.25 -0.09
10247
TOCOM Silver 51.50 0.10 +0.19 -0.39
146
TOCOM Palladium 1377.00 12.00 +0.88 18.20
138
Euro/Dollar 1.3189
Dollar/Yen 86.09
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
