* Firmer oil prices support gold near $770/oz
* Currencies, metals await direction from U.S. jobs data
(Recasts, adds detail, changes dateline pvs SYDNEY)
By Jan Harvey
LONDON, Dec 5 (Reuters) - Gold inched higher to hold just
below $770 an ounce, supported by slightly firmer oil prices, as
traders took to the sidelines ahead of this afternoon's key U.S.
jobs data.
Spot gold <XAU=> was quoted at $769.60/771.60 an ounce at
1007 GMT, little changed from $765.70 an ounce late in New York
on Thursday.
The foreign exchange markets, which usually have a
significant impact on gold, were quiet as traders awaited
direction from the U.S. non-farm payrolls data, due at 1330 GMT.
"This is the most important figure to be released and will
have a significant impact on those markets which drive the gold
price," said Dresdner Kleinwort consultant Peter Fertig.
A stronger-than-expected fall in the payrolls number "would
definitely be regarded by the markets as a sign of a deeper and
more prolonged recession in the United States," Fertig said,
adding that it could knock stock markets and crude oil prices
lower.
Economists polled by Reuters said they expect U.S. payrolls
to fall by more than 300,000 in November as weakening consumer
and business demand prompted companies to cut jobs.
[]
The dollar, a key external driver of gold, was steady ahead
of the announcement. Gold is often bought as a hedge against
weakness in the U.S. currency, and trades in the opposite
direction to it.
A larger-than-expected number could pressure the dollar as
it would signify more trouble for the U.S. economy, but if risk
aversion is boosted, the U.S. currency could rise as investors
turn to dollars as a haven from risk. []
Oil, however, lent some support to gold as it managed to
inch up above $44 a barrel. However, sharp falls in the crude
price this week have sent oil down to near a four-year low.
Firmer oil prices can boost interest in commodities as an
asset class, according to analysts.
DEFLATION EYED
However, gains in gold are being limited by expectations
inflation will fall after sharp drops in the price of many raw
materials such as crude oil and industrial metals.
Oil prices have shed more than $100 a barrel since they hit
an all-time high of $147.27 an barrel in July, while prices of
copper, aluminium and tin have also declined sharply.
"(Gold) prices (are) slipping due to near term deflationary
pressures as commodities slip," said John Meyer, an analyst at
Fairfax. "However, the yellow metal has been outperforming other
commodities and equities."
Among other precious metals, silver trod water along with
gold, and was quoted at $9.47/9.55 an ounce against $9.46 late
in New York on Thursday.
Platinum and palladium inched higher but remained rangebound
as they consolidated after sharp price falls earlier in the
week. Both metals have come under pressure from a spate of bad
news from the global auto market.
Chinese official industry data showed China's passenger car
sales fell more than 10 percent in November, a source told
Reuters. The China Association of Automobile Manufacturers are
due to release the data later on Friday. []
Meanwhile BMW <BMWG.DE> said its global sales fell by a
quarter in November. []
Spot platinum <XPT=> was quoted at $800/815 an ounce, up
from $786.50 an ounce late on Thursday.
"The metal continues to look to technical signals for
direction, and appears to be waiting for some sort of clue as to
how the 'Big Three' U.S. auto makers will go forward from here,"
said Standard Bank analyst Leon Westgate in a note.
Spot palladium <XPD=> was at $168.50/176.50 an ounce against
$166.50.
(Reporting by Jan Harvey; editing by Karen Foster)
