* Gold eases as firm dollar offsets rising equities, commods
* Central Bank Gold Agreement renewed for five-year term
* South African union, Eskom hope to avoid strike
(Releads, adds detail of U.S. data, updates prices)
By Jan Harvey
LONDON, Aug 7 (Reuters) - Gold eased on Friday after a
period of choppy trade following better-than-expected non-farm
payrolls data, which sparked gains across the commodity and
equity markets and prompted buying of the dollar.
Spot gold <XAU=> was bid at $957.60 an ounce at 1344 GMT,
against $962.15 late in New York on Thursday. U.S. gold futures
for December delivery <GCZ9> on the COMEX division of the New
York Mercantile Exchange were down $3.10 at $959.80.
The non-farm payrolls data released at 1330 GMT showed U.S.
employers cut 247,000 jobs in July, far fewer than expected and
the least in any month since last August. It was taken as clear
evidence the economy was turning around. []
"Any type of belief that there could be economic recovery
down the road is going to push futures prices higher," said Tom
Hartmann, a trader at Altavest.
"With an economic recovery or people thinking the recession
is slowing down or ending, thoughts of inflation are going to
increase," he said. "The longer term outlook on the dollar is
still negative."
The dollar erased initial losses in the wake of the data --
which sent gold to a day high of $964.70 -- to trade at session
highs versus the euro, diverting interest from hard assets such
as bullion. []
Traders said the dollar, which formerly benefited from
negative data as investors sought safety in the unit, is
starting to react positively to supportive economic data and
expectations the U.S. economy will outperform others.
Equities and commodities rallied on the data, meanwhile,
with European shares turning positive and Wall Street stocks
opened higher. [] []
Oil reversed earlier losses to climb more than 0.5 percent,
while base metals turned positive to rise across the board, and
other commodities such as grains and sugar also posted gains.
[] []
In supply news, the European Central Bank said a group of
central banks in Europe had renewed the Central Bank Gold
Agreement, a pact to limit gold sales for a five-year period.
[]
CEILING REDUCED
The sales ceiling for signatories of the pact has been
reduced to 400 tonnes a year from 500 tonnes previously, and a
planned sale of 403 tonnes of gold by the International Monerary
Fund will be accommodated within this limit, the ECB said.
"It is not a surprise at all that there is a new Central
Bank Gold Agreement ... if only to allow the accommodation of
the IMF sales," said Stephen Briggs, a commodity strategist with
RBS Global Banking & Markets.
Elsewhere South Africa's biggest union and state power firm
Eskom voiced hopes ahead of talks on Friday that a strike that
could paralyse the country will be averted. []
South Africa is the world's third biggest gold miner, the
number two palladium producer and by far the largest source of
platinum globally. Talk of a strike took platinum and palladium
prices to multi-month highs earlier in the week.
"There's been a lot of buying (of platinum group metals) on
this since Monday," said Standard Bank analyst Walter de Wet.
"Our general view was that strikes to the extent power will be
disrupted are highly unlikely."
Spot platinum <XPT=> was at $1,257 an ounce against $1,260,
late on Thursday while palladium <XPD=> was at $269.50 against
$269.50. Silver <XAG=> was at $14.70 an ounce against $14.54.
(Additional reporting by Catherine Bosley; Editing by Anthony
Barker)
