* Gold extends losses; firm oil cushion falls
* Coming Up: EZ ECB rate Decision Feb 2011; 1245 GMT
(Updates prices, adds quotes)
SINGAPORE, Feb 3 (Reuters) - Gold fell further on Thursday
on economic optimism in the United States and Europe, but rising
oil prices could offer support, while physical demand was
expected to pick up again after the Lunar New Year celebration.
Investors awaited the European Central Bank's rate decision
later in the day, but the U.S. non-farm payroll data due on
Friday was likely to be the main focus, with hiring probably
gathering steam in January.
Spot gold lost 40 cents to $1,335.60 an ounce by 0157
GMT after falling 0.5 percent in the previous session despite
tensions in Egypt, which pushed up energy prices. Bullion was
well below a lifetime high around $1,430 struck in December.
"In the near term, developments in Middle East will continue
keep the markets volatile, but more pivotal will be the ECB rate
decision and the non-farm payrolls due on Friday," said Pradeep
Unni, senior analyst and trader at Richcomm Global Services in
Dubai.
"Charts signal that sentiment would continue to be bearish
as long as gold is contained below $1,345 an ounce. Any
sustained gains above $1,350 could take gold above $1,365. Gains
from here on however would be slow and steady, with frequent
corrections."
Markets in Singapore, Hong Kong and China are closed for the
Lunar New Year.
The European Central Bank is expected to send a strong
signal on Thursday it is ready to tackle building euro zone
inflation pressures but refrain from indicating interest rate
increases are imminent.
In the United States, most economic indicators have
suggested that the economy is picking up, reducing gold's safe
haven appeal in times of uncertainty.
Friday's Labor Department report is expected to show a rise
in overall nonfarm payrolls of 145,000 in January, based on a
Reuters poll of analysts, and a 155,000 rise in private
payrolls.
U.S. gold futures for April added $4.2 to $1,336.3 an
ounce, tracking gains in oil prices. The contract had settled
more than $8 lower on Wednesday.
Brent crude approached $103 on Thursday after violent
clashes in Egypt raised the prospect of further unrest across
the Middle East, overshadowing the bearish effect of soaring
gasoline inventories in top consumer the United States.
The physical market was deserted because of the holiday in
bullion trading centres of Hong Kong and Singapore, but activity
was expected to return to normal early next week.
Physical trading was also slow in main consumer India as
jewellers waited for more declines in prices.
Gold imports in India rose 18 percent in January to 40
tonnes provisionally, and next month's wedding season could
further boost demand, head of a trade body said. See
Gold is widely given in religious celebrations and weddings
in India.
Precious metals prices 0157 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1335.60 -0.40 -0.03 -5.91
Spot Silver 28.37 0.01 +0.04 -8.07
Spot Platinum 1830.74 0.75 +0.04 3.58
Spot Palladium 812.66 1.44 +0.18 1.65
TOCOM Gold 3518.00 -2.00 -0.06 -5.66 23401
TOCOM Platinum 4858.00 13.00 +0.27 3.45 4956
TOCOM Silver 74.60 0.00 +0.00 -7.90 331
TOCOM Palladium 2146.00 -17.00 -0.79 2.34 389
Euro/Dollar 1.3808
Dollar/Yen 81.60
TOCOM prices in yen per gram. Spot prices in
$ per ounce.
(Reporting by Lewa Pardomuan; Editing by Manash Goswami)
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