* Gold flat on mixed U.S. data outlook after early rise
* Jobs indicators will hold sway over price direction
* Signs of quantitative easing would give gold a lift
* Coming Up: U.S. personal income, July; 1230 GMT
(Updates prices)
By James Regan
SYDNEY, Aug 30 (Reuters) - Gold steadied on Monday after
starting its fifth straight week in positive territory ahead of
fresh U.S. economic data that could signal a mixed outlook.
Bullion dealers said the extent of the U.S. economy's
ability to generate jobs would be the highlight of the data,
culminating in Friday's employment figures, and provide
direction for gold.
But with the grab bag of forecasts, dealers said gold might
have a tough time retesting the last session's high of
$1,242.25 an ounce.
Spot gold was quoted slightly higher at $1,236.45 by 0735
GMT versus Friday's notional close of $1,235.70. It touched a
high of $1,238.20 earlier in the day.
U.S. gold futures for December delivery <GCZ0> rose to
$1,239.20 an ounce against $1,237.90 on Friday.
Projected gains in July U.S. personal income later on
Monday could keep a lid on bullion's upside as an improving
outlook typically drives more investors away from safe harbours
like gold.
"Expectations are that personal income figures will be up,
and that's keeping some people out of gold," a dealer in Sydney
said.
Consensus figures point to a 0.3 percent increase in the
July figure for personal income, Thomson Reuters data shows.
Barclays Capital said it was looking for the August FOMC
minutes on Tuesday to show heightened concern about the
recovery, and a lower growth forecast for 2010.
"We would not be surprised to see some discussion of
potential policy alternatives," Barclays Capital said in a
note.
Gold prices got a leg up on Friday after comments from U.S.
Federal Reserve Chairman Ben Bernanke raised the prospect of
further quantitative easing and the possibility of inflationary
pressures. []
U.S. auto sales on Wednesday should show a slight gain,
according to Reuters data.
Economists polled by Reuters estimated that unemployment
rose to 9.6 percent in August from 9.5 percent in July and that
private-sector employers added 42,000 jobs to their payrolls
after adding 71,000 in July.
U.S. non-farm payrolls as a whole are estimated to have
shed 99,000 jobs in August, but this was a function of the
federal government releasing temporary census workers.
Lower volume trading due to a bank holiday in the United
Kingdom may also help stymie gold's upside, they said.
Further quantitative easing could potentially see gold
heading back towards its record high at $1,264.90 an ounce seen
on June 21, analysts said. []
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P> said its holdings stood at 1,298.556 tonnes
versus 1,297.948 tonnes on Aug. 26. []
Silver <XAG=> rose 10 cents to $19.13 an ounce, against
Friday's late price, having earlier touched an intra-day high
of $19.16.
Platinum <XPT=> was 50 cents lower at $1,530.00 an ounce.
Palladium <XPD=> last fetched $503.50, up $2.50.
Prices at 0735 GMT
Metal Last Change Pct chg YTD pct chg
Spot Gold 1236.45 0.75 +0.06 12.85
Spot Silver 19.13 0.10 +0.53 13.67
Spot Platinum 1530.00 -0.50 -0.03 4.29
Spot Palladium 503.50 2.50 +0.50 24.17
Euro/Dollar 1.2726
Dollar/Yen 85.12
(Additional reporting by Nick Trevethan, Editing by Himani
Sarkar)
