* Gold dips under $933; dollar recovers broadly
* U.S. nonfarm payroll data in focus at 1230 GMT
(Adds details, updates prices)
By Nick Vinocur
LONDON, July 2 (Reuters) - Gold fell towards $930 per ounce
on Thursday, losing ground as the dollar strengthened broadly
ahead of monthly U.S. jobs data that investors expect to provide
more clarity on the pace of economic recovery.
Spot gold <XAU=> stood at $932.05 at 1041 GMT, falling from
$939.95 late in New York on Wednesday.
The precious metal found support above $930 as investors
awaited U.S. non-farm payrolls data at 1230 GMT which could
dictate moves for the dollar and gold. []
Analysts said worse-than-expected data could spur safe-haven
flows into the U.S. currency, making gold relatively more
expensive to holders of foreign currency.
"In recent months we had strange behaviour where the dollar
strengthened in the wake of disappointing data," said Carsten
Fritsch, a commodities analyst at Commerzbank in Germany.
"That may happen again -- but if the data brings up risk
appetite that could weaken the dollar and help gold," he added.
While gold is also often bought as a safe haven asset, moves
in the dollar have returned to the fore as the main price driver
in recent months.
The dollar recovered from a near three-week low on Thursday,
as traders booked profits ahead of the jobs data and a policy
announcement from the European Central Bank at 1145 GMT.
The U.S. currency had slipped in earlier trade after China,
which holds vast reserves of the U.S. currency, called for a
debate on an alternative reserve regime at next week's Group of
Eight summit in L'Aquila in Italy. []
However, a Chinese foreign ministry official later quelled
speculation about currency reserve diversification.
VOLATILE
Analysts said gold prices could be volatile after the data
was released, as investors seek to close their positions ahead
of a long weekend in the United States.
"It's possible we'll see some very erratic price moves this
afternoon," said Robin Bhar, an analyst at Calyon. "It's a long
weekend and people will want to square up their positions."
Friday is a public holiday in the United States.
U.S. gold futures for August delivery <GCQ9> fell to $932.60
an ounce, down nearly 1 percent from the settlement on the COMEX
division of the New York Mercantile Exchange.
Physical demand for gold from the jewellery market, while
showing some signs of stabilisation, remained weak as buyers in
India waited for lower prices to wade into the market.
"Gold imports from India are way below last year's level,
and ETF flows are down," Commerzbank's Fritsch said.
Inflows into gold-backed exchange-traded funds have slowed
in the second quarter 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.
Europe's ETF Securities reported inflows into its three
gold-backed ETFs on Wednesday. [] []
The more industrial precious metals -- silver, platinum and
palladium -- also declined, pressured by the stronger dollar and
reflecting losses on the base metals market.
Spot silver <XAG=> dropped to $13.48 per troy ounce from
$13.74 quoted in New York, while platinum <XPT=> fell to
$1,180.50 against $1,198.50, and palladium <XPD=> dipped to
$249.50 from $252.00.
(Additional reporting by Miho Yoshikawa; Editing by Sue Thomas)
