* Market cautious ahead of key data release
* Technicals show $1,275 as target next week[]
* Coming up: U.S. Non-farm payrolls; 1230 GMT
By Rujun Shen and Jacqueline Wong
SHANGHAI, Sept 3 (Reuters) - Gold prices were steady on
Thursday, with buyers cautious on the physical market, as
investors wait for key U.S. job data due later in the day for
further clues on health of the economy.
Data released on Thursday showed a surprise rebound in
pending sales of previously owned homes in July, as well as a
fall in new jobless claims last week in the U.S.
[]
But the August U.S. non-farm payroll figures dur Friday,
expected to show loss of 100,000 jobs, might dampen recovery
hopes raised by this week's positive data and spur safe-haven
demand in gold. []
"In case of disappointing U.S. employment data, we can see
gold test the historical high of $1,265 tonight," said Louis
Lok, a dealer at Bank of China in Hong Kong, adding that even
though market sentiment was close to being overbought, bullion
was still likely to move higher.
The Relative Strength Index, or RSI, stood at 68.065, just
below the 70 level which is seen to mark an overbought market.
Despite the market's bullish sentiment, holdings in the
world's largest gold-backed exchange-traded fund, SPDR Gold
Trust <GLD.P>, fell for the first time in a week on Thursday
with a sizable decline of 9.12 tonnes, the largest one-day drop
since late July. []
But dealers traced it to profit-taking by some fund
investors. "For the longer term, there is still good reason for
gold to go higher," said Lok.
Spot gold <XAU=> was little changed at $1,249.60 an ounce
by 0311 GMT, just $15 below the record high of $1,264.9 hit in
June. It is heading for a weekly gain of 1.1 percent, its fifth
straight week of rises.
U.S. gold futures for December delivery <GCZ0> edged down
0.1 percent to $1,251.7.
Technical analysis showed bullion may edge up to $1,275 an
ounce over the next week, indicated by an ascending channel and
a big triangle, said Wang Tao, a Reuters market analyst.
[][]
For a graphic of the weekly gold technical outlook, click:
http://graphics.thomsonreuters.com/WT/20100309084655.jpg
Physical market activity is slow, as buyers became cautious
when prices approach the historical peak.
"We'll see if the Indians will continue to buy at this
level or just wait and see. People are a bit cautious when
prices are at this level," said Ronald Leung, a dealer at Lee
Cheong Gold Dealers.
Spot silver <XAG=> is posed to rise for the second week in
a row, building on last week's nearly 6 percent ascent. Silver
stood at $19.59 an ounce, barely changed from Thursday.
Platinum <XPT=> rose 0.3 percent to $1,548 an ounce, on
course for a 1.4 percen gain from a week earlier.
Asian stocks edged higher on Friday but gains were
tentative ahead of the U.S. data release. []
Precious metals prices at 0311 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1249.60 -1.14 -0.09 14.05
Spot Silver 19.59 0.01 +0.05 16.40
Spot Platinum 1548.00 4.90 +0.32 5.52
Spot Palladium 520.75 -0.18 -0.03 28.42
TOCOM Gold 3398.00 17.00 +0.50 4.27
16284
TOCOM Platinum 4232.00 48.00 +1.15 -3.40
9546
TOCOM Silver 53.50 0.70 +1.33 3.48
370
TOCOM Palladium 1423.00 14.00 +0.99 22.15
255
Euro/Dollar 1.2820
Dollar/Yen 84.32
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
