* Dollar steady, stocks edge up ahead of U.S. data
* Coming Up: U.S. non-farm payrolls for November, 1330 GMT
* Global platinum market seen in surplus in 2011-GFMS
(Updates prices)
By Elizabeth Fullerton
LONDON, Dec 3 (Reuters) - Gold rose back above $1,390 an
ounce on Friday, close to its strongest in three weeks, as the
metal was underpinned ahead of key U.S. jobs data due later that
could point to a strengthening economic recovery.
Spot gold <XAU=> rose 0.38 percent to $1,390 by 1231 GMT. It
had jumped to its highest since Nov 12 around $1,398 on Thursday
before falling back. U.S. gold futures for February <GCG1> added
$1.8 to $1,391.1 an ounce.
European shares and Bund futures were little changed ahead
of the much-watched U.S. non-farm payrolls data and the euro
inched higher, with traders unwilling to take big positions.
[] [] []
A stronger-than-expected preliminary jobs report on
Wednesday from ADP Employer Services raised expectations that
the data will be positive, analysts said. If it has a major
impact on the currency markets, the data will also impact gold.
"Given the fact the euro's been down and then up, it (gold)
could see a sharp reaction if it's a long way from consensus,"
said Mitsubishi analyst Matthew Turner.
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For a graphic on U.S. non-farm payrolls data click on:
http://r.reuters.com/veg48q
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In addition to the impact of currency moves, MF Global said
in a report that stronger-than-expected data could also dent
safe-haven buying of gold. "Such numbers could add pressure on
metals," it said.
Economists polled by Reuters forecast that U.S. employers
generated 140,000 new jobs in November after adding 151,000 in
October, while the unemployment rate is expected to be unchanged
at 9.6 percent. []
EURO ZONE CONCERNS LINGER
Gold is also supported by lingering concerns that the euro
zone debt crisis could spread to Spain and Portugal.
Spain's Economy Minister Elena Salgado said on Friday Spain
would not be the next in line for a rescue pacakge from Europe.
"The underlying issues haven't really been resolved and
there's a general view that one way of resolving them is for the
ECB to have a more accommodating monetary policy which is gold
supportive," Mitsubishi's Turner said.
Gold does well in a low interest environment, as this cuts
the opportunity cost of holding non-interest bearing assets.
Buyers in the world's biggest gold consumer, India, backed
off from making fresh purchases on Wednesday, traders said, as
prices traded near three-week highs.
"Jewellers are not at all comfortable at these prices, as
they are nearing $1,400 (an ounce)," said a dealer with a
state-run bullion importing bank in Mumbai.
On the investment side of the market, the world's largest
gold-backed exchange-traded fund, the SPDR Gold Trust <GLD>,
said its holdings rose to 1,298.447 tonnes by Dec 2 from
1,293.891 tonnes on Dec 1. []
The world's largest silver ETF, the Shares Silver Trust
<SLV>, said its holdings slipped to 10,778.68 tonnes by Dec 2
from 10,782.69 tonnes on Dec 1. []
Metals consultancy GFMS forecast silver would average around
$30 an ounce in 2011, peaking at $35, while gold would peak at
some $1,600-1,650 an ounce, and average $1,400. []
It expected global platinum market to see a surplus of about
25 tonnes in 2010, which will continue to pressure prices.
Silver <XAG=> tracked gold higher, trading at $28.74 an
ounce against $28.51 late on Thursday, while platinum <XPT=>
rose to $1,715.74 from $1,708.49 an ounce.
Palladium <XPD=> gave up modest early gains to trade down
0.16 percent at $758, after touching 9 year highs on Thursday.
(Editing by Alison Birrane)
