* Drop in risk appetite lifts dollar, pressures commodities
* U.S. January non-farm payrolls data due at 1330 GMT
* Palladium tumbles 6.3 percent to 2010 low
(Updates, adds comment, changes dateline from TOKYO)
By Jan Harvey
LONDON, Feb 5 (Reuters) - Gold fell nearly 1 percent to
below $1,050 an ounce, its lowest since early November, on
Friday as the dollar rose on rising risk aversion due to fears
over the fiscal health of peripheral euro zone economies.
Commodities and equities posted sharp falls, with oil prices
sliding below $73 a barrel, European shares hitting two-month
lows and the euro-dollar reaching its weakest in more than eight
months as concern grew over euro zone sovereign debt.
Spot gold <XAU=> touched a three-month low of $1,049.50 and
was bid at $1,052.25 an ounce at 1007 GMT, against $1,062.60
late in New York on Thursday.
U.S. gold futures for April delivery <GCJ0> on the COMEX
division of the New York Mercantile Exchange fell $10.20 to
$1,052.80 an ounce.
The dollar hit a seven-month high versus a currency basket
and its strongest since May against the euro on Friday as a
widening in euro zone government bond spreads highlighted fears
over the indebtedness of the region's weaker economies. []
"It looks like the next few days are going to see further
weakness in gold and further strength in the dollar," said
Standard Chartered analyst Dan Smith. "We see $1,020 an ounce as
the next point to look for."
Growing sovereign debt problems in the euro zone,
highlighted by European Central Bank chief Jean-Claude Trichet
in a press conference on Thursday, and rising U.S. jobless
claims have sparked jitters about the global economic recovery.
Commodities suffered across the board as the U.S. currency
strengthened, making dollar-priced assets more expensive for
holders of other currencies, with prices of oil and industrial
metals such as copper slipping lower. [] []
European stocks slid to their lowest since December on
Friday and Asian stocks fell to five-month lows as investors
dumped riskier assets. [] []
JOBS DATA EYED
The financial markets are now awaiting further clues on the
health of the U.S. economy from the release of non-farm payrolls
data at 1330 GMT, seen as a key indicator of economic health.
"A considerably stronger reading than the 10,000 forecast
(increase in jobs) could spark a rebound in risk appetite," said
TheBullionDesk.com analyst James Moore.
"However on the flip side a worse reading could trigger a
deeper correction," he added.
Standard Chartered's Smith said the growing risk aversion
permeating the markets meant the jobless figures would have to
be much better than expected to change the direction of the
market.
"In the last few days we have seen anything that is vaguely
negative leapt on, and anything positive generally being
ignored," he said. "The numbers will have to be extremely good
to make any difference to the current market mood."
Investment in gold-backed exchange-traded funds was
lacklustre, with holdings of the world's biggest, New York's
SPDR Gold Trust <GLD> falling 5.8 tonnes or 0.5 percent on
Thursday. []
However, premiums for gold bars in Asia were steady above $1
on Friday as jewellers made last-minute purchases ahead of the
Lunar New Year, with bargain hunting from other Asian consumers
also emerging as bullion held near three-month lows. []
Silver <XAG=> was at $15.06 an ounce versus $15.23 and
platinum <XPT=> was at $1,470.50 an ounce versus $1,499.50.
Palladium <XPD=>, a smaller and less liquid market than
other precious metals, hit a 2010 low of $379.50 an ounce and
was later at $386 against $406.50.
Holdings of new platinum- and palladium-backed ETFs launched
in New York last month have stabilised after rising sharply in
the first days of their existence, prompting price gains.
Holdings of ETFS Physical Platinum Shares <PPLT.P> were
unchanged for a third session at 244,941 ounces, while those of
ETFS Physical Palladium shares were steady for a seventh day.
(Editing by Sue Thomas)
