(Updates prices to TOCOM close)
By Chikafumi Hodo
TOKYO, Jan 7 (Reuters) - Gold edged lower on Monday as oil
price weakness and concerns about the U.S. economy after
weaker-than-expected U.S. jobs data prompted selling, but
sentiment was bullish with investors keen to buy on dips.
Investors sold to lock in their profits as cash gold has
gained more than 10 percent over the last month, but the weak
dollar outlook and lingering geopolitical tensions are likely
to keep the precious metal well-supported.
"It's about time that investors took profits in gold as
uncertainty in financial markets was growing after U.S. jobs
data," said Shuji Sugata, manager at Mitsubishi Corp Futures
and Securities in Tokyo.
"But there is no need to be overly worried as many still
believe that long-term sentiment for gold was bullish as there
are plenty of reasons to hold gold."
Cash gold was weighed by falls in Japanese gold futures,
but still close to last week's historic high of $869.05 an
ounce.
As of 0839 GMT, spot gold <XAU=> was at $858.70/859.50,
down from $862.00/862.70 late in New York on Friday and off a
session low of $856.
Psychological support for gold is seen at $850, Sugata
said, with the five-day moving average seen at $854.
COMEX gold futures extended losses in Asia after falling in
New York on profit-taking on Friday. The most active February
contract <GCG8> was trading down $4.40 or 0.5 percent at
$861.30 from the New York settlement.
Traders said a firmer yen against the dollar undermined
yen-based precious metals futures.
The benchmark December gold contract on the Tokyo Commodity
Exchange (TOCOM) <0#JAU:> closed at a session high of 3,044 yen
a gram, down 11 yen or 0.4 percent from 3,055 yen on Friday.
Its intraday low was 3,018 yen -- the lowest since Dec. 26.
TOCOM trading was extended by two hours to 5:30 p.m. (0830
GMT) from Monday.
"A stronger yen was weighing on TOCOM prices and also put
pressure on overall prices," said a senior trader at a Japanese
trading house.
"Weak oil prices also pressured gold, but you really cannot
sell gold heavily as many investors want to hold gold for
safe-haven purposes due to geopolitical tensions."
DOLLAR FALL
On Friday, the dollar tumbled after a U.S. government
report showed that employers added a scant 18,000 jobs in
December and the national unemployment rate kicked up to 5
percent, its highest level in more than two years.
Oil prices extended their losses on Monday, which also put
pressure on precious metals.
U.S. crude futures fell on Monday as the market weighed
OPEC's comments on the price outlook against bleak U.S.
employment data.
NYMEX crude for February delivery <CLc1> fell 36 cents to
$97.55 a barrel in Globex electronic trading. U.S. oil closed
$1.27 lower at $97.91 on Friday, slipping further from the
record high of $100.09 struck on Jan. 3 after poor U.S. jobs
data heightened concerns about the health of the economy.
Cash platinum <XPT=> was dragged down by falls in key TOCOM
platinum futures <0#JPL:>, which fell by more than 1 percent.
Key TOCOM platinum closed at 5,233 yen a gram, down 73 yen
or 1.4 percent from Friday. It fell to an intraday low of 5,215
yen -- the lowest since Dec. 19.
Platinum fell to $1,526/1,530 an ounce from $1,541/$1,545
in New York on Friday.
Palladium <XPD=> inched down to $364/368 an ounce from
$365/$368 in New York.
Silver <XAG=> fell to $15.20/15.25 an ounce from
$15.29/15.34 late in New York.
Precious metals prices at 0839 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 858.30 -1.30 -0.15 3.07
Spot Silver 15.20 -0.05 -0.33 2.91
Spot Platinum 1526.00 -24.00 -1.55 0.39
Spot Palladium 364.00 -1.00 -0.27 -1.09
TOCOM Gold 3044.00 -11.00 -0.36 -0.52
95020
TOCOM Platinum 5233.00 -73.00 -1.38 -1.99
55862
TOCOM Silver 537.40 -5.60 -1.03 -0.67
1346
TOCOM Palladium 1306.00 -31.00 -2.32 -3.33
1238
Euro/Dollar 1.4685
Dollar/Yen 109.31
TOCOM prices in yen per gram, except for silver which is in
yen per 10 grams, spot prices in $ per ounce.
(Reporting by Chikafumi Hodo; Editing by Valerie Lee)
