* Dollar steady, equities little changed ahead of U.S. data
* Coming up: U.S. August non-farm payrolls data at 1230 GMT
* Silver poised for further gains after 3-1/2 month high
(Updates prices)
By Jan Harvey
LONDON, Sept 3 (Reuters) - Gold prices held steady above
$1,250 an ounce in Europe on Friday, within $15 of their record
high, as investors took to the sidelines ahead of key U.S.
non-farm payrolls data later in the session.
Spot gold <XAU=> was bid at $1,252.24 an ounce at 1122 GMT,
against $1,250.74 late in New York on Thursday. U.S. gold
futures for December delivery <GCZ0> rose $1 to $1,254.40.
The precious metal has been supported by concerns the U.S.
economic recovery is losing traction, which could increase the
chances of more potentially inflationary quantitative easing by
the Federal Reserve.
The payrolls number, due at 1230 GMT, is likely to provide a
valuable pointer to the outlook for growth. U.S. employment
likely fell for a third straight month in August, by around
100,000 jobs, a Reuters poll suggested. []
"Today's job figures are pivotal for the bullion markets,
and it's almost certain that bullions would spike above all-time
highs if the figures come in worse than expected," said Pradeep
Unni, senior analyst at Richcomm Global Services.
He said a drop of less than 100,000 jobs could lead to
selling of gold, however. "The yellow metal could be forced to
trade below $1,220 mark in a short time frame." He added that a
fall of less than 50,000 jobs could spark a swifter sell-off.
On the wider markets, the dollar was also little changed
versus the euro <EUR=>, with higher-yielding currencies
supported by an improvement in U.S. housing and jobless claims
data that bolstered investor appetite for risk. []
European shares edged higher in early trade, tracking gains
in the United States and Japan, but the move was muted as
traders were cautious ahead of the payrolls report. []
Among other commodities, oil fell as traders awaited the
jobs data, while Hurricane Earl's approach to the U.S. east
coast, fuelled concerns of disruptions to refineries and demand
during the Labor Day long weekend. []
ETF HOLDINGS FALLS
But despite strength in prices, physical demand for the
precious metal was muted.
The world's largest gold-backed exchange-traded fund, New
York's SPDR Gold Trust <GLD.P>, reversed the inflows it reported
over the last week, with its holdings falling more than 9 tonnes
to 1,294.908 tonnes on Thursday. []
Meanwhile, Indian gold buying was muted for a second day on
Friday as traders were cautious about placing fresh orders after
prices traded near an all-time high, dealers said.
[]
Surging prices have weighed heavily on the price-sensitive
Indian market in recent years. "People would be happy even if
there (were) a small decline of $20 (an ounce)," said one dealer
with a private bank in Mumbai.
Among other precious metals, silver <XAG=> was bid at $19.66
an ounce against $19.58, having earlier matched the 3-1/2 month
high at $19.68 an ounce it hit on Thursday.
Technical analysts at Barclays Capital said the metal had
reestablished its uptrend after breaking through its June high
at $19.47 an ounce earlier this week.
"We are bullish on silver, looking for an eventual test of
the 2008 high of $21.35," said ScotiaMocatta in a note.
Elsewhere platinum <XPT=> was at $1,561.50 an ounce against
$1,543.10, while palladium <XPD=> was at $525.98 versus $520.93.
(Reporting by Jan Harvey; Editing by Anthony Barker)
