* Gold edges down as dollar ticks up ahead of U.S. jobs data
* Non-farm payrolls seen falling by 520,000 in May
* Platinum, palladium benefit from fund buying
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By Jan Harvey
LONDON, June 5 (Reuters) - Gold edged down in Europe on
Friday as the dollar index inched higher and oil prices eased a
touch, with traders awaiting key U.S. jobs data due later in the
session.
Spot gold <XAU=> was bid at $975.75 an ounce at 1055 GMT,
against $979.10 an ounce late in New York on Thursday. U.S. gold
futures for June delivery <GCM9> on the COMEX division of the
New York Mercantile Exchange fell $4.70 to $976.50 an ounce.
The May non-farm payrolls report is closely watched for its
impact on currencies and expectations for a wider economic
recovery, both of which feed strongly into the gold market,
analysts said.
"The market is consolidating ahead of the figures," VTB
Capital analyst Andrey Kryuchenkov said.
The dollar <.DXY> firmed 0.1 percent versus a basket of
currencies. Strength in the dollar weighs on gold, which is
sometimes used as hedge against currency weakness, while dollar
priced commodities become more expensive for other currency
holders. []
Oil, widely seen as a good indicator of investors' interest
in commodities as an asset class, slipped on Friday to just
below $69 a barrel, down from the seven-month high it hit on
Thursday.
Firmer crude prices often benefit gold, which is sometimes
bought as a hedge against oil-led inflation. If oil prices post
further gains, they could help push gold higher, as long as the
dollar is also supportive, traders said.
Commodities across the board are likely to be affected by
the U.S. payrolls data's impact on the wider markets. ADP jobs
data on Wednesday showed employers cut more than half a million
jobs in May, suggesting the economy was still struggling.
"Gold could draw additional support on the confirmation of
weakness on the U.S. jobs market," said Pradeep Unni, senior
analyst at Richcomm Global Services in Dubai. "At the moment,
the trend still seems to be biased towards higher highs."
INFLOWS
Investment demand was relatively quiet, with holdings of the
SPDR Gold Trust, the largest gold exchange-traded fund, steady
on Thursday. London's ETF Securities saw an inflow of nearly
28,000 ounces into its three gold ETFs. []
Buying in India, the leading global bullion consumer, was
subdued as customers anticipated lower prices. []
Among other precious metals, silver <XAG=> was at $15.62 an
ounce against $15.85. Palladium rose, extending the previous
session's fund-driven gains, while platinum edged lower.
Platinum <XPT=> was quoted at $1,284 an ounce against
$1,290.50, while palladium <XPD=> was at $258 against $252.50.
The metals were lifted on Thursday by gains in other
industrial commodities like oil and copper, which benefited from
hopes the downturn may bottom out. However, the gains looked to
be investment led rather than consumer led, traders said.
"Platinum seems to be getting a lift from the ETF markets,"
Commerzbank trader Rory McVeigh said. "Sponge is still at a
discount....indicating that the industrials aren't taking metal
on yet."
Platinum sponge is usually used by industrial consumers,
while ingot is used by buyers such as jewellers and investors.
(Editing by William Hardy)
