* Gold's alternative investment demand up on weak equities
* Jobs indicators seen holding sway over price direction
* Signs of quantitative easing would give gold a lift
* Coming Up: US consumer confidence, Fed minutes on Tues.
(Recasts, adds comments, updates prices to market close)
By Frank Tang
NEW YORK, Aug 30 (Reuters) - Gold rose in a tight range on
Monday, starting its fifth straight week in positive territory,
with dealers looking to key U.S. jobs reports later this week
for clarity on the economy's health.
Trade was fairly muted, with the markets in Britain closed
for a public holiday.
Bullion has benefited from fears of a double-dip recession
as recent U.S. economic reports such as the durable-goods
orders and home sales data last week pointed to a stalling
economic recovery.
(Graphic: http://link.reuters.com/kuv45m)
"As long as weak economic data releases continue, investor
interest should remain high. With the start of the festival
season in India, this will be an additional supporting factor
for gold prices," said Eugen Weinberg, head of commodities
research at Commerzbank.
Demand for gold as an alternative investment rose on Monday
as the equity markets accelerated declines after comments from
U.S. President Barack Obama on possible additional steps to
boost the economy did little to soothe investor anxiety about
recovery. []
On Friday, gold trimmed gains due to a Wall Street rally
after Federal Reserve Chairman Ben Bernanke said the economic
recovery had weakened more than expected and the U.S. central
bank stood ready to act if necessary to spur growth.
[]
Spot gold <XAU=> was at $1,237 by 2:12 p.m. EDT (1812 GMT)
versus $1,235.70 late in New York on Friday. U.S. gold futures
for December delivery <GCZ0> settled $1.30 at $1,239.20 an
ounce.
On Monday, the metal largely ignored a U.S. personal income
report, which showed consumer spending rose at the strongest
pace in four months in July.
However, the core PCE index, the Federal Reserve's favorite
inflation gauge, rose only 0.1 percent, rekindling deflation
talk, which is bearish for gold's inflation hedge appeal.
[]
Bullion dealers said the extent of the world's biggest
economy's ability to generate jobs will 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 U.S. ADP
private sector employment figures on Wednesday and the U.S.
non-farm payrolls report on Friday.
FED MINUTES IN FOCUS
On Tuesday, the Fed will release its minutes of the U.S.
central banks's Aug. 10 meeting, and investors will get further
insight into its controversial decision to buy more longer-term
Treasury securities in the face of a weakening economy.
[]
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.
Gold prices got a leg up last week after Fed officials'
comments raised the prospect of further quantitative easing and
the possibility of inflationary pressures.
Further quantitative easing could potentially see gold
heading back toward its record high at $1,264.90 an ounce seen
in June, analysts said. []
In other metals, silver <XAG=> was at $19.02 an ounce,
against Friday's late price at $19.03. The metal hit a
two-month high of $19.32 last week.
Platinum <XPT=> stood at $1,524 an ounce compared with
$1,530.50 previously. Palladium <XPD=> was at $495 against $501
quoted late on Friday in New York.
Prices at 2:11 p.m. EDT (1811 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US gold <GCZ0> 1239.20 1.30 0.1% 13.0%
US silver <SIU0> 19.038 -0.001 0.0% 13.0%
US platinum <PLV0> 1533.10 -3.90 -0.3% 4.2%
US palladium <PAU0> 497.90 -5.15 -1.0% 21.8%
Gold <XAU=> 1237.25 1.55 0.1% 12.8%
Silver <XAG=> 19.02 -0.01 -0.1% 12.9%
Platinum <XPT=> 1528.00 -2.50 -0.2% 4.3%
Palladium <XPD=> 495.00 -6.00 -1.2% 22.1%
Gold Fix <XAUFIX=> 1235.00 0.50 0.0% 11.9%
Silver Fix <XAGFIX=> 19.03 -8.00 -0.4% 12.0%
Platinum Fix <XPTFIX=> 1530.00 0.00 0.0% 4.4%
Palladium Fix <XPDFIX=> 503.00 3.00 0.6% 25.1%
(Additional reporting by Veronica Brown in London and James
Regan in Sydney; Editing by Marguerita Choy)
