* Gold dips under $930 after U.S. payrolls data
* Euro pressured by Trichet comments
* Turkish gold imports resume in June
(Updates prices, adds comment, detail of U.S. payrolls data)
By Nick Vinocur and Jan Harvey
LONDON, July 2 (Reuters) - Gold fell below $930 per ounce on
Thursday as the dollar rose versus a basket of currencies after
a larger than expected dip in U.S. non-farm payrolls, which
prompted some buying of the currency as a haven from risk.
The euro also extended losses against the dollar after
European Central Bank chief Jean Claude Trichet said euro zone
activity was likely to be weak for the rest of the year. []
Spot gold <XAU=> fell to a low of $926.10 and was at $930.40
at 1319 GMT, versus $939.95 late in New York on Wednesday.
"Today's payrolls surprised most market expectations, and
the dollar rose as a result," said Pradeep Unni, senior analyst
at Richcomm Global Services. "However, the data is not likely to
have a long term impact on the (gold) market."
"The immediate slide in gold seems to be more because (of
the) panic selling that got triggered from currency markets and
stock markets," he said.
U.S. employers cut 467,000 jobs in June, far more than
expected, while the unemployment rate rose to 9.5 percent.
The worse-than-expected data spurred safe-haven flows into
the dollar, making gold pricier for holders of other currencies.
[]
Assets seen as higher-risk, such as equities and some
currencies, slipped in the wake of the numbers. While gold is
often seen as a safe haven asset, moves in the dollar are taking
precedence as the metal's main price driver. [] []
Ongoing volatility in the currency markets is set to benefit
gold, according to traders.
"I expect gold to recover ground as people look for
alternatives to currencies," said Simon Weeks, head of precious
metals at the Bank of Nova Scotia. "For the time being, though,
we still remain in a $915-945 range."
JULY 4 WEEKEND
Analysts said gold prices could see increased volatility
after the data was released, as investors sought to close their
positions ahead of a long weekend in the United States.
"It's possible we'll see some very erratic price moves this
afternoon," said Robin Bhar, an analyst at Calyon. "It's a long
weekend and people will want to square up their positions."
Friday is a public holiday in the United States.
U.S. gold futures for August delivery <GCQ9> fell to $930.90
an ounce, down more than 1 percent from the settlement on the
COMEX division of the New York Mercantile Exchange.
Physical demand for gold from the jewellery market, while
showing some signs of stabilisation, remained weak as buyers in
India waited for lower prices to wade into the market.
Imports into Turkey, one of the top three consumers of the
precious metal, rose to 4.336 tonnes in June from zero in the
previous month, according to data from the Istanbul Gold
Exchange. []
Among exchange-traded funds, the SPDR Gold Trust <GLD>, said
holdings were at 1,120.55 tonnes as of July 1, unchanged from
the previous business day. ETF Securities however said it saw
inflows into its three gold ETFs on Wednesday. []
The more industrial precious metals -- silver, platinum and
palladium -- also declined, pressured by the stronger dollar and
reflecting losses on the base metals market.
Spot silver <XAG=> dropped to $13.38 per troy ounce from
$13.74 quoted in New York, while platinum <XPT=> fell to $1,181
against $1,198.50, and palladium <XPD=> dipped to $247.50 from
$252.00.
(Editing by James Jukwey)
