April 5, 2017 / 11:08 AM / 5 months ago

PRECIOUS-Gold falls after U.S. jobs data, failure to break resistance

    * Failure to break 200-day moving average weighs
    * U.S. jobs data beats expectations
    * Safe haven demand underpins prices ahead of Trump-Xi
summit

 (Updates prices, recasts with U.S. jobs data)
    By Peter Hobson
    April 5 (Reuters) - Gold fell from one-month highs on
Wednesday after better-than-expected U.S. jobs data boosted U.S.
bond yields and the dollar, but safe-haven demand ahead of a
meeting of U.S. and Chinese leaders limited losses. 
    A stronger dollar makes gold more expensive for holders of
other currencies, while higher bond yields dampen demand for
non-yielding bullion.
    Spot gold        was down 0.8 percent at $1,245.63 an ounce
at 1400 GMT, while U.S. gold futures         were 0.8 percent
lower at $1,248.40 an ounce.
    Gold touched $1,261.15, its highest since Feb. 27, on
Tuesday but failed to close above its 200-day moving average,
currently at $1,258, for the third time in less than six weeks.
    "The failed consolidation above the 200 DMA has no doubt hit
investor confidence, however we do still continue to see solid
interest for the metal at current levels," said Sam Laughlin at
MKS PAMP. 
    Investors were poised to push gold higher, said Georgette
Boele at ABN AMRO. "Upward momentum is getting stronger. It
looks like the market is not willing to give up yet." 
    Gold has risen 8.8 percent so far this year and has held
just under its 200-day moving average since late March.
    But investors were hesitating ahead of U.S. non-farm
payrolls data due on Friday and the minutes from the most recent
U.S. Federal Reserve meeting to be released later on Wednesday,
Boele said. 
    Hawkish signals from the Fed would undermine gold prices
because higher interest rates lead to higher bond yields. Sharp
gains in employment would bolster the case for rate rises and
likely boost the dollar. 
    A preview of the non-farm payrolls came on Wednesday when
the less comprehensive ADP National Employment Report showed
that U.S. private employers added 263,000 jobs in March, beating
economists' forecasts of 187,000 additions.             
    The data pushed up the dollar and U.S. bond yields and sent
gold to its lowest since March 31.                     
    Gold was supported however by demand for safe assets after a
chemical attack in Syria appeared to put Russia and the United
States on a diplomatic collision course and North Korea fired a
ballistic missile into the sea ahead of a summit between U.S.
President Donald Trump and Chinese President Xi Jinping.
                                      
    Spot silver        was down 0.4 percent at $18.20 an ounce,
having touched a one-month high of $18.41 in the previous
session.
    Platinum        advanced 0.1 percent to $959.60 an ounce,
while palladium        was up 1.1 percent at $813.50.

    
 (Additional reporting By Nallur Sethuraman in Bengaluru,
editing by David Evans and Susan Thomas)
  

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