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PRECIOUS-Gold inches up on weak jobs data, stimulus hopes
August 5, 2013 / 3:47 AM / in 4 years

PRECIOUS-Gold inches up on weak jobs data, stimulus hopes

* Gold up for second session on stimulus hopes
    * Data shows U.S. employers slowed pace of hiring
    * Asian shares soft, dollar up slightly 

 (Updates prices)
    By A. Ananthalakshmi
    SINGAPORE, Aug 5 (Reuters) - Gold edged higher on Monday
after softer-than-expected U.S. nonfarm payroll data eased fears
of an imminent tapering of the Federal Reserve's stimulus
    Gold had fallen below $1,300 last week after strong U.S.
gross domestic product and factory activity data that reduced
its investment-hedge appeal. However, it rebounded after data
showed U.S. employers slowed their pace of hiring.
    Spot gold was trading 0.2 percent higher at
$1,314.26 an ounce by 0656 GMT, while U.S. gold gained
about $3 to $1,313.90.
    "These markets are very much driven in the immediate future
by the data that gives us an idea as to when the tapering is
going to start taking effect. And gold being very much the most
sensitive to that," said Mark Keenan, cross-commodity research
strategist at Societe Generale in Singapore.
    Gold, seen as a hedge against inflation, had gained in
recent years as the global economy took a hit and central banks
acted to boost their economies. Prices touched an all-time high
of $1,920.30 in 2011.
    In recent weeks, the Fed has said that it would begin
tapering its $85 billion monthly bond purchases if the U.S.
economic recovery retained momentum, prompting investors to
closely monitor housing and jobs data. 
    "The tapering is very much on the horizon. We see it this
year," said Keenan.
    Hedge funds and money managers trimmed their gold net longs
and raised their bullish position in silver futures and options,
a report by the Commodity Futures Trading Commission showed on
    Holdings in SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, fell 0.26 percent to 918.64
tonnes on Friday touching fresh four-year lows. 
    "The outlook is bearish for gold, and we expect a test of
the major low at $1,180, to target $1,156," ScotiaMocatta
analysts wrote in a note. Gold hit a near three-year low of
$1,180 on June 28. 
    "This is the 61.8 percent retracement of the 2008 to 2011
uptrend, and should be a major support level for gold."   
 Precious metals prices 0656 GMT
 Metal             Last    Change  Pct chg  YTD pct chg    Volume
 Spot Gold        1314.26    2.76   +0.21    -21.52
 Spot Silver        19.89   -0.01   -0.05    -34.31
 Spot Platinum    1444.74   -0.01   -0.00     -5.88
 Spot Palladium    728.97   -0.53   -0.07      5.34
 COMEX GOLD DEC3  1313.90    3.40   +0.26    -21.60        13860
 COMEX SILVER SEP3  19.92    0.00   +0.02    -34.29         3602
 Euro/Dollar       1.3272
 Dollar/Yen         98.44
 COMEX gold and silver contracts show the most active months
 (Reporting by A. Ananthalakshmi; Editing by Michael Perry and
Joseph Radford)

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