* Market cautious ahead of key data release
* Technicals show $1,275 as target next week[]
* Coming up: U.S. Non-farm payrolls; 1230 GMT
(Updates prices; adds Andean deal in para 17)
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 awaited key U.S. job data due later in the day to
scrounge 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 due Friday,
expected to show a loss of 100,000 jobs, might dampen recovery
hopes raised by this week's positive data, and spur safe-haven
demand in gold. []
"In the case of disappointing U.S. employment data, we
could 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 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 the
drop of 9.12 tonnes marking the largest one-day decline 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 $1,250.44 an ounce
by 0552 GMT, just $15 below the record high of $1,264.9 hit in
June. It is heading for a weekly gain of 1.2 percent, its fifth
straight week of rises.
U.S. gold futures for December delivery <GCZ0> was barely
changed at $1,252.6.
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 was slow, as buyers become
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.
Gold demand from the subcontinent traditionally surges at
this time of year, in preparation for the Hindu festival and
wedding season when the precious metal is widely gifted.
Spot silver <XAG=> is poised to rise for the second week in
a row, building on last week's ascent of nearly 6 percent.
Silver stood at $19.57 an ounce, barely changed from Thursday.
Platinum <XPT=> rose 0.5 percent to $1,550.90 an ounce, on
course for a 1.5 percent gain from a week earlier.
A takeover battle has erupted for Australian-listed gold
miner Andean Resources Ltd <AND.AX> with Canadian miners
Goldcorp Inc <G.TO> and Eldorado Gold Corp <ELD.TO><EAU.AX>
making bids for the firm.[]
Precious metals prices at 0552 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1250.44 -0.30 -0.02 14.12
Spot Silver 19.57 -0.01 -0.05 16.28
Spot Platinum 1550.90 7.80 +0.51 5.72
Spot Palladium 522.50 1.57 +0.30 28.85
TOCOM Gold 3396.00 15.00 +0.44 4.20
21586
TOCOM Platinum 4235.00 51.00 +1.22 -3.33
11814
TOCOM Silver 53.50 0.70 +1.33 3.48
448
TOCOM Palladium 1421.00 12.00 +0.85 21.97
326
Euro/Dollar 1.2820
Dollar/Yen 84.20
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
