* Jobs indicators seen holding sway over price direction
* Signs of quantitative easing would give gold a lift
* COMING UP: U.S. personal income 1230 GMT.
(Adds quotes, updates prices, changes byline, dateline from
SYDNEY)
By Veronica Brown
LONDON, Aug 30 (Reuters) - Gold firmed in a tight range on
Monday, starting its fifth straight week in positive territory,
with dealers looking to key U.S. jobs reports for clarity on its
economic health.
Spot gold was quoted at $1,236.65 by 0911 GMT versus
$1,235.70 late in New York on Friday. Trade was fairly muted in
Europe, with UK markets closed for a public holiday. U.S. gold
futures for December delivery <GCZ0> rose 70 cents to $1,238.60
an ounce against $1,237.90 on Friday.
Bullion dealers said the extent of the world's biggest
economy's ability to generate jobs would be a key driver for
prices, culminating in Friday's employment figures, and provide
direction for gold.
"This coming week will clearly indicate where the U.S.
stands economically -- employment is key. Only depending on the
data will gold get a clear trend," said Pradeep Unni, senior
analyst at Richcomm Global Services, referring to data including
U.S. ADP private sector employment figures on Wednesday and the
U.S. non-farm payrolls report on Friday.
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.
Robust employment readings could make it hard for gold
prices to retest the recent two-month high at $1,244.00 an
ounce, but Unni said discussions about further quantitative
easing after last week's speech from U.S. Fed Chairman Ben
Bernanke would keep prices supported at the lower levels.
Projected gains in July U.S. personal income later on Monday
could also keep a lid on bullion's upside as an improving
outlook typically drives more investors away from safe harbours
like gold.
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," Barcap said in a note to
clients.
QE2?
Gold prices got a leg up on Friday after comments from Ben
Bernanke raised the prospect of further quantitative easing and
the possibility of inflationary pressures. []
Further quantitative easing could potentially see gold
heading back towards its record high at $1,264.90 an ounce seen
in June, analysts said. []
On the investment front, 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.
[]
"A new demand group is emerging with the ETFs in India, the
world's largest gold consumer," Commerzbank analysts said. "The
country's largest ETF provider expects inflows of 100 to 200
tonnes in the next three years, which should give additional
support to gold prices."
Unni also said that gold should see seasonal demand kick in
over the next few months, which would support prices on any
dips.
In other metals, silver <XAG=> firmed alongside gold to
$19.08 an ounce, against Friday's late price at $19.03, bringing
the metal closer to last week's two-month high of $19.32.
Platinum <XPT=> stood at $1,531.00 an ounce compared with
$1,530.50 previously. Palladium <XPD=> was fetching $501.93
against $501.00 quoted late on Friday in New York.
(Additional reporting by James Regan in Sydney)
(Reporting by Veronica Brown; Editing by Alison Birrane)
