* Platinum and palladium ease from multi-month highs
* If jobs data comes below forecast,may encourage gold buying
By Chikako Mogi
TOKYO, Jan 8 (Reuters) - Gold prices eased on Friday as a
firm dollar dampened demand from investors, who were also
cautious about trading ahead of key U.S. jobs data due later in
the day.
The dollar was broadly firmer on Friday as growing
expectations for an upbeat jobs report helped it hit a fresh
four-month high against a struggling yen. []
Forecasts for payrolls have been creeping higher all week and
the median is now for a flat outcome, with some as high as a
100,000 rise <ECI/US>. []
Since gold prices have largely taken into account an upbeat
payrolls number, any negative surprise could fuel concerns about
the U.S. economy and bolster demand for the precious metal,
possibly pushing bullion towards a recent high, traders said.
"Gold is being weighed down this session by the dollar's
firmness," said Wakako Harada, senior trader at Mitsubishi Corp
in Tokyo.
"Given the speculation for a good (jobs) number, if the data
comes out below expectations, it could encourage investors to buy
gold and push prices higher," she said.
Spot gold <XAU=> had fallen 0.9 percent to $1,121.70 per
ounce as of 0641 GMT, compared to New York's notional close of
$1,131.40 per ounce. Prices climbed 4 percent in the first three
trading sessions of 2010 to a three-week high of $1,140.20, but
struggled to extend gains as the greenback recovered.
At current levels, spot gold was poised for around a 3
percent rise on the week.
U.S. gold futures for February delivery <GCG0> were down 1.0
percent at $1,122.20 per ounce, compared to $1,133.70 an ounce on
the COMEX division of the NYMEX.
Platinum and palladium were both weaker on Friday after
hitting multi-month peaks the previous day on confirmation that
the first U.S. platinum- and palladium-backed exchange-traded
funds (ETFs) will be launched on Friday.
NYSE Euronext said on Thursday that ETFS Physical Platinum
Shares <PPLT> and ETFS Physical Palladium Shares <PALL> will
begin trading on the NYSE Arca platform. The funds are wholly
owned by London-based ETF Securities Ltd. []
These ETFs will give U.S. investors easier access to the
industrial metals, which have already rallied on hopes for more
fund-based stockpiling.
Platinum fell 1 percent to $1,538.50 <XPT=>, after rising on
Thursday to match the 16-month high hit on Wednesday of $1,561.
Palladium <XPD=> was down 0.4 percent at $422.25 after rising on
Thursday to its firmest since July 2008 of $431.50.
Investment flows into gold have stalled as prices eased, with
holdings at the world's largest gold-backed exchange-traded fund,
SPDR Gold Trust <GLD>, easing 0.366 tonnes to 1,123.503 tonnes as
of Jan. 7. The holdings are slightly below a record high of
1,134.03 tonnes set on June 1. []
Precious metals prices at 0638 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1121.60 -9.80 -0.87 2.36
Spot Silver 18.05 -0.17 -0.93 7.25
Spot Platinum 1539.50 -15.00 -0.96 4.94
Spot Palladium 422.75 -1.25 -0.29 4.25
TOCOM Gold 3383.00 14.00 +0.42 3.80 66602
TOCOM Platinum 4630.00 18.00 +0.39 5.68 19613
TOCOM Silver 54.80 0.70 +1.29 6.00 859
TOCOM Palladium 1275.00 14.00 +1.11 9.44 506
Euro/Dollar 1.4306
Dollar/Yen 93.39
TOCOM prices in yen per gram and spot prices in $ per ounce.
