* Gold recovers from lows, tracking commodity complex
* Bullion pressured by dollar rise on upbeat US jobs data
* Silver, platinum down on gold's wake
* Coming up: U.S. Dec. nonfarm payrolls data on Friday
(Recasts, adds comments, link to graphic, updates prices to
market close)
By Frank Tang
NEW YORK, Jan 5 (Reuters) - Gold fell on Wednesday as the
dollar surged and strong U.S. private-sector jobs data dented
safe-haven buying, but bullion ended off its lows as
commodities rebounded on an improving economic outlook.
A report showing three times more hiring than forecast for
U.S. private sector jobs boosted prices of oil, metals and
grains at midday after all fell in early trade as the dollar
strengthened and Tuesday's profit-taking retreat carried over.
[] []
"A lot of gold's weakness has to do with the fact that
investors believe economic performance is going to pick-up as
we start 2011," said James Dailey, portfolio manager of the
Team Asset Strategy Fund <TEAMX.O>.
Some investors said the rise in gold and other commodities
was too much and too soon, as they unwound solid gains made on
thin volume over the holidays, when silver hit a series of
30-year highs and palladium touched a near 10-year peak. Gold
had come within $10 of a new all-time high on Monday.
Spot gold <XAU=> fell 0.3 percent to $1,376 an ounce at
3:57 p.m. EST (2057 GMT). Earlier, it fell more than 1 percent
to session lows at $1,363.80, a day after it lost 2.5 percent
to its biggest one-day loss since early November in a
profit-taking commodities rout. U.S. February gold futures
<GCG1> settled down $5.10 at $1,373.70.
Gold had gained nearly 30 percent in 2010 to a record
$1,430.95 on Dec. 7.
Spot silver <XAG=> dropped 1.5 percent to $29.32 an ounce.
U.S. gold and silver futures volume was noticeably higher
than recent weeks' for a second straight day. COMEX gold and
silver turnover were both about 20 percent higher than their
30-day averages.
"There is no doubt that if the economic news continues to
come out in a positive manner, that should add more pressure on
gold as people feel more comfortable and secure in currencies
and other vehicles," said Miguel Perez-Santalla, vice president
of sales at Heraeus Precious Metals Management.
Technical resistance also weighed down on gold, which has
risen toward the $1,420 an ounce level three times since
November but failed each time.
Independent investor Dennis Gartman said that gold would
fall toward the $1,300-1,320 area if prices dropped below a
trend line connecting bullion's lows in October and November.
(Graphic: http://link.reuters.com/men84r)
Other analysts said economic uncertainty such as concerns
over sovereign risk in the euro zone should firmly underpin
demand for gold as a safe-haven investment.
"I don't think this marks a turnaround from what has been
and continues to be bullish sentiment towards gold and hard
assets in general," said Credit Agricole analyst Robin Bhar.
"The ADP (job) numbers and the recent raft of economic
numbers are good to see, but it's not a one-way bet that this
market is in a solid economic uptrend," he said. "There are
still a lot of banana skins along the way."
PAYROLLS IN FOCUS
The ADP report for December comes two days ahead of the key
December nonfarm payrolls report, which is forecast to show a
rise in jobs. []
Reflecting waning investor appetite for gold, holdings of
the world's largest gold exchange traded fund, the SPDR Gold
Trust <GLD>, fell to a seven-month low, reversing most of the
inflows that followed the euro zone debt crisis. []
Silver <XAG=> fell for a third consecutive session, under
pressure from the strength in the dollar and a decline in other
growth-linked assets such as base metals.
Silver, which can mimic gold's performance when investors
feel nervous about the broader financial markets, is also an
industrial commodity that can take its cue from higher-risk
assets such as stocks and base metals.
Adding to the pressure on silver was the third daily rise
in the gold/silver price ratio, which measures the number of
ounces of silver needed to buy one ounce of gold.
The ratio fell by a third to multi-year lows in 2010 as
silver outperformed gold with an 84 percent price rise.
Platinum group metals was weaker in tandem with gold and
silver despite stronger December U.S. auto sales data.
[]
Spot platinum <XPT=> fell 1.8 percent to $1,721.49, while
palladium <XPD=> lost 0.4 percent to $771.72.
Prices at 3:59 p.m. EST (2059 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US gold <GCG1> 1373.70 -5.10 -0.4% -3.4%
US silver <SIH1> 29.198 -0.310 0.0% -5.6%
US platinum <PLJ1> 1730.30 -12.80 -0.7% -2.7%
US palladium <PAH1> 775.30 6.25 0.8% -3.5%
Gold <XAU=> 1376.40 -3.33 -0.2% -3.0%
Silver <XAG=> 29.30 -0.47 -1.6% -5.1%
Platinum <XPT=> 1721.49 -31.75 -1.8% -2.6%
Palladium <XPD=> 771.72 -3.25 -0.4% -3.5%
Gold Fix <XAUFIX=> 1368.00 -14.75 -1.1% -3.0%
Silver Fix <XAGFIX=> 29.21 -146.00 -4.8% -4.6%
Platinum Fix <XPTFIX=> 1722.00 13.00 0.7% -0.5%
Palladium Fix <XPDFIX=> 754.00 10.00 1.3% -4.7%
(Additional reporting by Amanda Cooper in London; Editing by
Marguerita Choy)
