* Gold eases below $1,200, investors book profits
* For a technical outlook on gold, click on []
* Coming Up - U.S. nonfarm payrolls for April; 1230 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, May 7 (Reuters) - Gold edged down on Friday
after rising toward an all-time high the previous day on
Europe's escalating debt woes and tumbling U.S. stocks, but
strong safe haven demand is likely to help the metal test new
highs.
Gold has gained as much as 10 percent this year as
investors spooked by potential contagion from the eurozone debt
crisis rushed to buy to the precious metal, whose safe haven
appeal tends to increase in times of economic and geopolitical
crises.
Spot gold <XAU=> was at $1,199.50 an ounce at 0301 GMT,
down $7.75 cents from New York's notional close on Thursday,
when it jumped 3 percent to its highest since December 2009 at
$1,210.35 an ounce -- marking its biggest one-day gain in more
than a year.
Gold struck record at $1,226.10 five months ago.
Dealers expected volatile trade ahead, with investors
waiting for U.S. nonfarm payrolls later on Friday which could
give clues on the state of the economy. For a preview, click on
[]
"We could see the recent highs touched and broken in a
blink of an eye in this kind of market. At the same time, we
can easily see it backed down to $1,170 or something," said
Darren Heathcote, head of trading at Investec Australia in
Sydney.
"Tonight, we've got the nonfarm payrolls which are the
fundamentals and strong figures are expected which could be
very very positive in terms of the global outlook. For the time
being, I expect volatility."
Gold priced in euro <XAUEUR=R> and sterling <XAUGBP=R> held
near Thursday's record, while holdings in the world's largest
gold-backed ETF, SPDR Gold Trust <GLD>, rose to another record
of 1,185.787 tonnes as of May 6. []
U.S. gold futures for June delivery <GCM0> added $3.1 an
ounce to $1,200.40, having risen to a five-month high the
previous day.
The Nikkei fell more than 4 percent on Friday after U.S.
stocks plunged as much as 9 percent on worries Europe's debt
crisis gathered was spreading. U.S. stocks had plunged in the
last two hours of trading on Thursday in a suspected trading
glitch before clawing back some of the losses. [] []
Europe equity funds saw more than $2 billion in net
outflows in the week to May 5, the most in a year, with fears
of a growing euro zone sovereign debt crisis spreading from
Greece, EPFR Global said on Friday in a report. []
The physical sector saw selling of gold bars from Indonesia
and Thailand, while main consumer India was on the sidelines
because of a weaker rupee. <INR=>
"Selling continues but the amount is not that much. It
looks like fundamentals are still good. There's no interest
from India. I think they are running away," said a dealer in
Singapore.
The euro extended gains above $1.27 against the dollar on
Friday as market players covered short positions on news that
Group of Seven finance ministers will discuss efforts to get
aid to debt-stricken Greece later in the day. []
Precious metals prices at 0301 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1199.50 -7.75 -0.64 9.47
Spot Silver 17.56 -0.05 -0.28 4.34
Spot Platinum 1657.00 32.00 +1.97 12.95
Spot Palladium 497.00 -5.50 -1.09 22.56
TOCOM Gold 3573.00 25.00 +0.70 9.63
58659
TOCOM Platinum 4936.00 -78.00 -1.56 12.67
30779
TOCOM Silver 52.90 -0.30 -0.56 2.32
579
TOCOM Palladium 1472.00 -49.00 -3.22 26.35
1339
Euro/Dollar 1.2700
Dollar/Yen 92.40
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
