* Bullion slides as dollar, risk appetite rise
* Jobs data in focus; currencies seen vulnerable
* COMING UP: U.S. employment report for October at 1230 GMT
(Recasts, adds comments/details, changes dateline from SINGAPORE)
By Michael Taylor
LONDON, Nov 5 (Reuters) - Gold hit a fresh record around
$1,394 an ounce on Friday, before turning lower as the dollar
firmed and the U.S. Federal Reserve's decision to buy more
government bonds earlier this week improved risk sentiment.
Spot gold <XAU=> traded at $1,383.30 an ounce at 1036 GMT,
against $1,392.25 late in New York on Thursday. U.S. gold
futures for December delivery <GCZ0> traded at $1,383.2.
"The price keeps hitting a new record every day," said Eugen
Weinberg, analyst at Commerzbank. "The quantitative easing (QE)
and the loss of trust in the currencies, is definitely the game
changer at the moment.
"The sentiment of markets is positive ... the Fed unleashed
the reaction of the market ... instead of buying the rumour and
selling the fact, they bought the rumour and the fact as well."
Gold had its biggest one-day rise in about six months on
Thursday after the Fed's pledge to pump over half a trillion
dollars into the economy battered the dollar.
The Federal Reserve committed $600 billion to buy government
bonds late on Wednesday in a fresh effort to support a
struggling U.S. economy, undermining the U.S. currency and
stoking fears over longer-term inflation. []
"The key implication of the QE measures is that major
currencies -- particularly the U.S. dollar -- are likely to lose
value relative to 'alternative' currencies such as gold," said
David Thurtell, analyst at Citi.
"Gold's traditional disadvantage, no yield, is largely
reduced in a zero interest rate world," he added. "But its major
advantage, limited supply, is massively enhanced, as central
banks expand the paper money supply with further QE."
On Friday, the dollar was steady but remained near 11-month
lows against a basket of currencies, as the Federal Reserve's
stimulus package spurred investor's appetite for risk. []
Policymakers from the world's new economic powerhouses in
Asia criticised the Fed's move to inject billions of dollars
into the U.S. economy, saying it made any substantive deal on
cutting global economic imbalances less likely at next week's
Group of 20 meeting in Seoul. []
"Gold had been playing follow the leader rather than leading
the way of late ... and the dollar has regained some poise
overnight," said Simon Weeks, head of precious metals at the
Bank of Nova Scotia. "If people are putting risk back on the
book, then gold should be underperforming."
Investors began to focus on the release of monthly U.S. jobs
data, which may show anemic jobs growth in October. A weaker
number could see the dollar-selling trend gather pace.
Economists in a Reuters poll forecast 60,000 jobs were
created in October after 95,000 were lost in September.
[]
"It has been a choppy week from whatever angle you look at
it," added Weeks. "It's at the tail end of a week that has been
all news-event driven, so unless it's something really out of
whack, people may be content to let the week come to a quiet
conclusion."
Among other metals, silver <XAG=> hit a 30-year high to
catch up with gold prices, while palladium <XPD=> rose to a
fresh nine-year high.
Silver <XAG=> hit $26.62 an ounce, but was last traded at
$26.00 against $26.33.
Palladium <XPD=> peaked at $686 an ounce and was later at
$672.97 an ounce against $680.50 late on Thursday. Platinum
<XPT=> was traded at $1752.49 an ounce against $1,781.
(Reporting by Michael Taylor; editing by Alison Birrane)
