* Gold slips to near $975, eyes on U.S. employment data
* SPDR gold ETF holdings <XAUEXT-NYS-TT> stable
* Caution creeps into market ahead of $1,000 mark
By Miho Yoshikawa
TOKYO, June 5 (Reuters) - Gold was a touch softer near $975
on Friday as traders grew cautious ahead of the release of U.S.
employment data, which could provide further insights into
whether the economy is pulling out of a deep slump.
The precious metal rose about 2 percent on Thursday after
Goldman Sachs <GS.N> raised its forecast for oil prices at the
end of 2009 to $85 a barrel from $65, triggering inflation-hedge
buying of gold. []
Gold came close to $990 this week, within sight of the $1,000
mark first hit in March 2008 and last touched in February this
year.
"I think there's a sense of caution in the market as gold
nears the $1,000 mark," said Shuji Sugata, a manager at
Mitsubishi Corp Futures & Securities in Tokyo.
Gold <XAU=> was at $976.90 per ounce at 0235 GMT, down 0.2
percent from New York's notional close of $979.10.
U.S. gold futures for August delivery <GCQ9> were at $978.60
per ounce, down 0.4 percent.
Sugata said many traders were refraining from trading
actively ahead of the release of the U.S. Labor Department's May
employment report at 1230 GMT. "They'll want to see how the
market will react to the data," he said.
In other closely followed data, the world's largest
gold-backed exchange-traded fund, the SPDR Gold Trust <GLD>, said
holdings remained at 1,132.50 tonnes as of June 4, unchanged from
the previous business day. []
Holdings remain within sight of the record high of 1,134.03
tonnes marked on June 1, however.
Changes in gold ETF holdings are closely watched by market
participants because sharp inflows into them could be a bullish
signal that longer-term retail investors are entering the market.
Sugata said physical buying had petered out after gold topped
$900.
He said buying could resume, however, if traders begin to
feel comfortable at these high levels.
Oil prices hit a seven-month high of $69.60 per barrel on
Thursday after U.S. data showed a drop in jobless claims,
boosting expectations of an economic recovery that could revive
energy demand. It continues to trade above $69. []
Climbing oil prices have become a factor to influence the
gold market by igniting inflation fears.
The dollar inched down against a basket of major currencies
on Friday, with investors shifting money to higher-yielding
currencies from the safe-haven dollar on views the global
recession is easing. []
PRICES
Precious metals prices at 0233 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 976.90 -2.20 -0.22 10.99
Spot Silver 15.88 0.03 +0.19 40.28
Spot Platinum 1273.00 -17.50 -1.36 36.59
Spot Palladium 249.00 -3.50 -1.39 34.96
TOCOM Gold 3050.00 44.00 +1.46 18.54 33779
TOCOM Platinum 3989.00 142.00 +3.69 50.41 16571
TOCOM Silver 491.70 18.00 +3.80 53.99 504
TOCOM Palladium 792.00 31.00 +4.07 44.00 629
Euro/Dollar 1.4195
Dollar/Yen 96.76
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Miho Yoshikawa; Editing by Michael Watson)
