* Gold flat around $940, awaits key U.S. jobs report
* SPDR Gold holdings <XAUEXT-NYS-TT> steady
By Miho Yoshikawa
TOKYO, July 2 (Reuters) - Gold was nearly flat around $940 on
Thursday ahead of monthly U.S. jobs data that is expected to shed
light on how quickly the economy is turning the corner, which
will likely dictate moves for the dollar and gold.
Bullion rose above $940 on Wednesday, attracting investors
seeking a hedge against a falling dollar, which hit a three-week
low against the euro on news that China was seeking debate on
proposals for a new global reserve currency at next week's Group
of Eight summit in Italy. []
China is the biggest holder of U.S. Treasuries as well as
vast reserves of the U.S. currency. But analysts said it was
unlikely that the dollar's reserve currency status would be
challenged in the forseeable future.
Gold has also benefitted from persisting worries that heavy
government borrowing could boost inflation.
"All markets today have their eyes glued on the U.S. data,"
said Kazuhiko Saito, chief analyst at brokerage Fujitomi Co Ltd
in Tokyo.
He said the market was also under pressure due to weak buying
interest this year, including from India, the leading consumer of
the precious metal.
Gold <XAU=> was at $939.30 an ounce at 0536 GMT, slightly
below the notional New York close of $939.95.
U.S. gold futures for August delivery <GCQ9> were at $939.9
an ounce, down 0.1 percent from the settlement on the COMEX
division of the New York Mercantile Exchange.
"Market sentiment seems to be expecting that perhaps the
economy may be stabilising, but sporadic 'not so good' data have
brought the markets back to reality and kept trading in a range,"
said Adrian Koh, an analyst at Phillip Futures in Singapore.
Holdings in the world's largest gold-backed exchange-traded
fund have been falling in the past few weeks as growing optimism
about the global economy saps investors' appetite for the
safe-haven asset.
The SPDR Gold Trust <GLD>, said holdings were at 1,120.55
tonnes as of July 1, unchanged from the previous business day.
[]
The dollar held close to a three-week low against the euro on
Thursday as the market hunkered down to await the U.S. jobs
figures. []
In other precious metals, commodities research firm CPM Group
told Reuters that the platinum market will see a narrower surplus
in 2009 on the back of strong investment demand for
platinum-backed exchange-traded funds. []
But the health of the auto industry, which uses the metal in
autocatalysts to clean exhaust fumes, will remain key.
Platinum was trading at $1,185.50 per ounce, down 1.1 percent
from the notional close in New York of $1,198.50, and down about
8 percent from the year's high of $1,293 marked last month.
PRICES
Precious metals prices at 0538 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 938.80 -1.15 -0.12 6.66
Spot Silver 13.72 -0.02 -0.15 21.20
Spot Platinum 1189.00 -9.50 -0.79 27.58
Spot Palladium 251.00 -1.00 -0.40 36.04
TOCOM Gold 2926.00 24.00 +0.83 13.72 23708
TOCOM Platinum 3715.00 57.00 +1.56 40.08 7461
TOCOM Silver 426.30 3.70 +0.88 33.51 342
TOCOM Palladium 791.00 16.00 +2.06 43.82 313
Euro/Dollar 1.4113
Dollar/Yen 96.61
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Chris Gallagher)
