PRECIOUS-Gold weaker as dollar firms, US jobs data eyed

                                
 * Gold falls slightly on firmer dollar versus euro
                                
 * U.S. jobs data eyed, keeping investors to the sidelines
                                
 By Risa Maeda
                                
 TOKYO, Jan 9 (Reuters) - Gold fell slightly on Friday as the
dollar regained some ground against the euro, with investors
mostly taking a wait-and-see stance ahead of key U.S. jobs data
due later in the day.
                                
 As of 0301 GMT, spot gold <XAU=> stood at $853 per ounce,
down 0.4 percent from New York's notional close of $856.10.
                                
 All eyes were on the U.S. government's employment report due
later on Friday, which was expected to show the world's biggest
economy had lost more than 500,000 jobs in December.
                                
 A worse-than-expected result would likely have a big impact
on U.S. stocks and the dollar, and consequently on gold.
                                
 On Thursday gold rose 1.6 percent, largely driven by a fall
in the dollar, which makes gold more attractive as an alternative
asset.
                                
 But the dollar on Friday regained some ground against the
euro, which was hurt by expectations of further rate cuts by the
European Central Bank.
                                
 The euro slipped 0.3 percent to $1.3671 <EUR=>. The European
single currency has whipsawed between $1.3964 and a three-week
low of $1.3312 this week, according to EBS data. [USD/]
                                
 Some analysts said gold could face further selling even if
the jobs report comes in worse than expected and pushes down the
dollar.
                                
 Another factor weighing on gold was recent weakness in oil
after data this week showing soaring U.S. crude inventories.
                                
 "Gold currently looks more vulnerable to stock markets and
oil, or commodities in general," because once investors turn risk
averse and sell assets for cash, a sell-off hits them all, said
Shuji Sugata, manager at Mitsubishi Corp Futures and Securities.
                                
 "Cash activity is limited as liquidity has gone down ahead of
the U.S. government jobs report," Sugata said.
                                
 Gold hit a two-week low of $833 per ounce in early trade on
Thursday on increasing demand for cash after a grim
private-sector report on the U.S. jobs market helped send global
equities reeling.
                                
 U.S. crude futures <CLc1> were up 2 percent at $42.52 per
barrel, but off a one-month high above $50 hit earlier this week.
                                
 COMEX gold futures eased in Asia after rising 1.5 percent the
previous day. U.S. gold futures for February delivery <GCG9>
stood at $853.8 per ounce, down $0.7 from Thursday's settlement
on the COMEX division of the New York Mercantile Exchange.
                                
 The December gold contract on the Tokyo Commodity Exchange
<0#JAU:> was up 18 yen per gram at 2,513 yen.
                                
 HSBC said it was 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.
                                
 But the bank cut its 2009 price view for platinum by 15
percent on slowing industrial demand. [ID:nL8461798]
                                
 South Africa's 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. [ID:nL8195281]
                                
 Commodity index rebalancing was expected to add selling
pressure to gold and live cattle but will benefit copper and
crude oil, analysts at U.S. brokerage J.P. Morgan said.
[ID:nN08404422]
                                
 The Dow Jones-AIG index <.DJAIG> will change its weightings
from Jan. 9 to Jan. 15. Re-weighting of the S&P GSCI index
<.SPGSCI> is underway from Jan. 8 to Jan. 14.
                                
 Among other precious metals, cash platinum <XPT=> rose to
$996.50 an ounce from $990.50, having earlier this week topped
the $1,000 mark for the first time since Oct. 15.
                                
 Cash palladium <XPD=> stood at $194 an ounce, almost flat
from $194.50, and silver <XAG=> was at $11.09 an ounce, compared
with New York's notional close of $11.08.
 Precious metals prices at 0258 GMT
 Metal             Last    Change  Pct chg  YTD pct chg  Turnover
 Spot Gold         852.95   -3.15   -0.37     -3.09
 Spot Silver        11.09    0.01   +0.09     -2.03
 Spot Platinum     996.50    6.00   +0.61      6.92
 Spot Palladium    194.00   -0.50   -0.26      5.15
 TOCOM Gold       2513.00   18.00   +0.72     -2.33        13282
 TOCOM Platinum   2926.00    6.00   +0.21     10.33         3397
 TOCOM Silver      322.50    0.50   +0.16      1.00          135
 TOCOM Palladium   575.00    5.00   +0.88      4.55           62
 Euro/Dollar       1.3660
 Dollar/Yen         91.24
 TOCOM prices in yen per gram, except for silver which is in yen
per 10 grams, spot prices in $ per ounce.
 (Editing by Chris Gallagher)