* Dollar firms a touch versus the euro, pressuring gold
* Market awaits key U.S. non-farm payrolls data at 1330 GMT
* Investec cuts 2009 platinum forecast by 28 percent
(Updates throughout, changes dateline, pvs TOKYO)
By Jan Harvey
LONDON, Jan 9 (Reuters) - Gold prices edged down in Europe
on Friday, pressured by a slight firming in the dollar versus
the euro and with trading cautious ahead of key U.S. non-farm
payrolls data due later in the session.
Spot gold <XAU=> slipped to $853.75/855.75 an ounce at 1027
GMT from $856.10 late in New York on Thursday. It has remained
in a narrow range for much of the day ahead of the U.S. data
release at 1330 GMT.
U.S. gold futures for February delivery <GCG9> on the COMEX
division of the New York Mercantile Exchange rose 10 cents to
$854.60.
Trading is likely to remain muted ahead of the employment
data, a key indicator of the health of the U.S. economy.
U.S. employers probably cut the most jobs in at least 34
years last month as the global economic crisis gathered pace,
according to a Reuters poll.
Economists responding to the survey expect non-farm payrolls
to register a drop of 550,000 jobs in December. []
"Clearly this is a very important number, so trading is
going to be a bit cautious ahead of (that)," said RBS Global
Banking & Markets commodity strategist Stephen Briggs.
In the short term, gold is taking its cues predominantly
from the currency markets. The dollar firmed a touch against the
euro as the single currency suffered from the release of dismal
European economic data. []
A stronger dollar tends to pressure gold, which is often
bought as an alternative asset to the U.S. currency and tends to
move in the opposite direction to it.
Oil prices, which also tend to influence gold, steadied
above $40 a barrel in anticipation of the data.
The positive effect of a potential supply cut from Saudi
Arabia is balanced by an impending resolution to the
Russia-Ukraine gas spat that could allow supplies to resume,
anlaysts said. []
In the longer run, concern over the prospects for the global
economy continue to support gold as a haven from risk.
However, jewellery buying is relatively lacklustre and
strong demand for investment coins and bars is said by traders
to have slackened since its autumn peak.
In India, the world's leading market for gold jewellery,
buying remains muted with prices at relatively high levels.
"There is hardly any demand at these prices," said Mayank
Khemka, managing director of bullion importer Khemka
International in Delhi.
PLATINUM
Platinum has posted modest gains since the beginning of the
year after a sharp sell-off in the last nine months of 2008,
which knocked prices down 65 percent from their March highs.
However, it is still likely to suffer in 2009 from falling
demand from carmakers, the major consumers of the white metal.
Investec cut its 2009 platinum forecast by 28 percent to
$970 an ounce, although it said it remains positive on the
longer-term outlook.
"We see downside risk to the platinum price in the
near-term," it said. "The outlook for vehicle sales, which
accounts for 50 percent of platinum and palladium demand and 80
percent of rhodium demand, remains very poor."
Spot platinum <XPT=> was quoted at $991/996 an ounce, little
changed from $991.50 late in New York on Thursday, while
palladium <XPD=> was at $193.50/198.50 an ounce from $194.50.
Spot silver <XAG=> was at $11.14/11.20 an ounce against
$11.08.
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV.A>, said its bullion holdings rose 1
percent or just over 55 tonnes on January 8.
(Reporting by Jan Harvey; Editing by William Hardy)
