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Gold slips ahead of US jobs data; on track for third weekly loss

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Reuters SINGAPORE
Last Updated : Apr 04 2014 | 6:45 AM IST

SINGAPORE (Reuters) - Gold edged lower on Friday as the market nervously awaited U.S. nonfarm payrolls data, even as the metal headed for a third straight week of losses amid better-performing equities and growing optimism about the U.S. economy.

FUNDAMENTALS

* Spot gold slipped 0.2 percent to $1,284.90 an ounce by 0021 GMT.

* The metal is down 0.7 percent for the week, though it has recovered a little after having hit a seven-week low on Tuesday.

* Investors in gold, which is often seen as a hedge against economic uncertainty, are eyeing the U.S. jobs report later on Friday to gauge the strength of the economy and any potential impact on the Federal Reserve's stimulus measures.

* A weak report could boost gold's appeal as a safe-haven, while a strong report could prompt speculation that the Fed could lift rates earlier than previously expected.

Also Read

* Platinum producer Lonmin has declared force majeure with some contractors at its South African mines due to the effects of a lengthy strike, meaning a drop in business for those suppliers and a growing impact on the economy as a whole.

* Gold premiums in India are expected to fall from current levels of about $30 an ounce after the central bank indicated it is considering removing some of the curbs to trade that have crippled imports.

MARKET NEWS

* Asian markets settled in for a subdued session on Friday as investors counted down the hours to the U.S. jobs report, while the euro nursed a grudge after the European Central Bank opened the door to more aggressive easing, albeit not just yet.

(Reporting by A. Ananthalakshmi; Editing by Ed Davies)

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First Published: Apr 04 2014 | 6:38 AM IST

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