* Traders await non-farm payrolls data due Friday
* Oil weak after 12 percent fall
(Releads, adds comment, updates prices)
By Jan Harvey
LONDON, Jan 8 (Reuters) - Gold rose more than 2 percent on
Thursday in a rally sparked by a weaker dollar that tumbled
after U.S. weekly data showed the number of Americans remaining
on unemployment benefits at a 26-year high.
Traders are now keenly awaiting key U.S. non-farm payrolls
data due on Friday. Any further sign of weakness in the U.S.
economy is likely to have a significant impact on the dollar,
and consequently on gold.
Spot gold <XAU=> was quoted at $856.05/858.05 at 1445 GMT,
against $842.20 an ounce in New York late on Wednesday. Earlier
it touched a session high of $864.15.
U.S. gold futures for February delivery <GCG9> on the COMEX
division of the New York Mercantile Exchange were up $14.90 at
$856.60.
"The dollar has weakened, so in theory that should underpin
gold," Robin Bhar, a senior metals analyst at Calyon, said.
"People are waiting for tomorrow's non-farm numbers."
"The (Friday) jobs data is expected to be bad and that would
see an equities sell-off," he said.
The dollar fell against the euro after the U.S. jobs data
showed the number of benefit claimants staying on jobless rolls
at a 26-year high, although the number of workers filing new
claims for unemployment benefits unexpectedly fell. []
Gold's subsequent break higher sparked a technical bounce,
analysts said.
Oil prices, which weighed heavily on gold on Wednesday,
remained weak after sliding 12 percent in the previous session
on data showing a larger than expected rise in U.S. crude
stocks. []
Weakness in the crude market tends to weigh on gold, as the
precious metal is often bought as a hedge against oil-led
inflation, and because it can dent interest in commodities as an
asset class.
"I suspect that if (oil) cracks $40 or lower, then we'll see
gold back down to $835/$840," said Bhar.
FORECASTS
Goldcorp Inc <G.TO>, one of the world's largest gold miners,
said it expects to produce 2.3 million ounces of gold in 2009,
and that it will boost its gold production by 50 percent over
the next five years. []
Meanwhile, Harmony Gold Mining <HARJ.J>, the world's
fifth-largest gold producer, said it sees gold rising to $900 an
ounce this year, and that it expects to produce 1.6 million
ounces of the precious metal this year. []
HSBC said it is raising its 2009 and 2010 gold price
forecasts on expectations the faltering global economy will
prompt investors to buy into the metal as a haven from risk.
The bank raised its 2009 gold forecast to $825 an ounce from
$800, and its 2010 price view to $775 from $725, but left its
long-term forecast at $700.
"We believe gold will attract safe-haven buying from
risk-averse investors this year, as economic uncertainties are
likely to persist for the foreseeable future," HSBC analyst
James Steel said in a research note.
The bank cut its 2009 price view for platinum by 15 percent,
however. It sees demand falling as the economic slowdown hits
industrial users of the white metal, such as carmakers.
Spot platinum <XPT=> was little changed at $963.50/973.50 an
ounce from $972.50 in New York late on Wednesday. The metal has
held firm this week despite a spate of bad news from carmakers,
the main buyers of platinum.
"This relative strength is mainly attributable to the fact
that the former price slump was exaggerated and the negative
news was consequently already factored in," Commerzbank said.
"Furthermore, there is optimism at the moment that the
rescue measures for the U.S. car industry and the various huge
economic stimulus packages worldwide will bring a recovery in
the demand for platinum in the medium term."
"The very weak car sales figures are therefore being
overlooked near term," it added.
Among other precious metals, silver <XAG=> was at
$11.15/11.23 against $11.01, while palladium <XPD=> eased to
$194.50/199.50 an ounce from $195.
(Reporting by Jan Harvey; Additional reporting by Michael
Taylor; Editing by Sue Thomas)
