* Euro edges up versus the dollar in subdued trade
* Oil prices bounce back as demand fears are allayed
* Coming up: U.S. non-farm payrolls data at 1330 GMT.
(Updates, adds comment, changes dateline from SINGAPORE)
By Jan Harvey
LONDON, March 5 (Reuters) - Gold firmed in Europe on Friday
as the dollar eased versus the euro ahead of key U.S. non-farm
payrolls data due later in the session, with investors looking
for fresh clues as to the resilience of the economic recovery.
Spot gold <XAU=> was bid at $1,135.10 an ounce at 1041 GMT,
against $1,131.45 late in New York on Thursday. U.S. gold
futures for April delivery <GCJ0> on the COMEX division of the
New York Mercantile Exchange rose $2.70 to $1,135.80 an ounce.
Investors are hoping non-farm payrolls data due at 1330 GMT
will help clarify the outlook for the U.S. economy, though some
commentators say the bad weather that hit many parts of the
United States last month may have clouded the picture.
"Depending on what the non-farm does to the dollar, we could
see an upside break this afternoon," Credit Agricole analyst
Robin Bhar said. "(But) soft labour data may bolster risk
aversion and help the dollar, which would put pressure on gold."
"It is a tough one to read, which is why the markets are a
bit becalmed ahead of it," Bhar added. "It can be quite a
volatile number, as we have seen, and one which may be even more
difficult to call this time around."
The number of people working in the United States is
expected to have fallen by some 50,000 in February as winter
storms kept workers at home, a Reuters poll suggested. A swift
recovery is expected in March, however. []
"The market is likely to shrug off a mild dip in the series
due to the weather spillover, but a very strong number excluding
the wildcard factors would take the market by surprise," said
Standard Chartered in a note.
The dollar fell versus the euro <EUR=> ahead of the data,
easing 0.1 percent. This helped lift gold, as weakness in the
U.S. unit lifts gold's appeal as an alternative asset and makes
dollar-priced commodities cheaper for other currency holders.
OIL BOUNCES BACK
Among other commodities, oil prices rose after China
signalled it would maintain its economic stimulus, boosting
hopes demand will remain firm. Copper prices also firmed as
improving economic data lifted equities. [] []
In terms of physical gold demand, the world's largest
gold-backed exchange-traded fund, SPDR Gold Trust <GLD>, said
its holdings stood at 1,115.511 tonnes as of March 4, unchanged
from the previous business day. []
Among other precious metals, silver <XAG=> was bid at $17.26
an ounce against $17.10, tracking gains in gold.
Record demand drove the U.S. Mint's silver coin sales 40.2
percent higher in the first two months of the year to 5.643
million ounces from 4.025 million ounces, data released on the
mint's website showed. []
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its holdings fell 61.02 tonnes
from a day before to 9,412.43 tonnes on March 4. []
Platinum <XPT=> was at $1,574 an ounce against $1,576.50,
while palladium <XPD=> was at $462 against $458.50.
Palladium has outperformed other precious metals this year,
rising 14 percent compared to a 7.3 percent rise for platinum,
3.5 percent for gold and 2.4 percent for silver.
"Palladium prices were notably strong, supported by spread
trading between platinum and palladium," said HSBC in a note.
"This is based in part on recent auto sales improvement
regions that are more reliant on gasoline engines -- i.e. North
America and China -- as compared to diesel engines, which are
predominantly sold in Europe."
Gasoline-powered vehicles use a greater percentage of
palladium and less platinum than diesel engines, which require
more platinum and less palladium.
(Editing by James Jukwey)
