PRECIOUS-Gold steady as investors await US data, election

Thu Nov 1, 2012 3:23am EDT

* China PMI data show economy improving in October
    * Spot gold may edge up to $1,736/oz - technicals
    * Coming up: U.S. consumer confidence, Oct; 1400 GMT

 (Updates prices)
    By Rujun Shen
    SINGAPORE, Nov 1 (Reuters) - Gold traded flat on Thursday,
shrugging off data showing China's economy was perking up, as
investors looking for more clarity on the global economy focused
instead on U.S. employment data due on Friday.
    Gold had climbed to near $1,800 an ounce in early October
after aggressive stimulus measures announced by central banks
including the U.S. Federal Reserve and European Central Bank
fuelled a rally.
    But the momentum has fizzled, and gold has been stuck in a
narrow range in recent days as investors stayed put ahead of the
release of the U.S. nonfarm payrolls data on Friday, and the
presidential election next week.
    Gold barely moved after data was released showing that
China's economy is finally regaining traction, although the
recovery remains sluggish. 
    "The reason for gold to rise is uncertainty. If PMI numbers
rise, that adds to confidence in the market, which is probably
negative to gold," said Jeremy Friesen, commodity strategist at
Societe Generale in Hong Kong.
    But he added that an improving Chinese economy would
encourage more gold buying, which would help boost demand for
the precious metal and support prices. 
    In addition, the global economic outlook remains uncertain
as the euro zone debt crisis drags on and the U.S. economy has
yet to show signs of a substantial recovery.
    "There is still enough uncertainty out there, and central
banks will still have to do some heavy-lifting, and it should be
supportive of gold," Friesen said.
    Spot gold was nearly flat at $1,721.41 an ounce by
0656 GMT, after hitting a one-week high of $1,725.55 in the
previous session.
    U.S. gold inched up 0.2 percent to $1,722.10.
    Technical analysis suggested that spot gold may rebound
marginally to $1,736 an ounce, as indicated by a falling channel
and a Fibonacci retracement analysis, said Reuters market
analyst Wang Tao. 
    
    
    PHYSICAL MARKET ACTIVITY SUBDUED
    The anaemic performance has also led to sluggish activity in
the physical market in Asia.
    "There is some preparation for Christmas going on, but
overall not much is happening as prices are stuck in a range,"
said a Singapore-based dealer.
    In Singapore, gold bar premiums stood at 80 cents an ounce
above London prices, she added.
    Investors are also waiting for U.S. auto sales data due
later in the day. Sales are set to rise 11 percent in October,
led by Toyota Motor Corp and Honda Motor Co 
which benefited from increased demand for compact cars as
gasoline prices remained high across the country.
 
    An improved auto market will help underpin sentiment in
platinum group metals that are widely used to produce catalysts
to clean vehicle exhaust. 
    Spot palladium rose 1.2 percent to $607.47, moving
close to a one-week high of $609.5 hit in the previous session. 
    Spot platinum gained half a percent to $1,569.49.
    
   Precious metals prices 0656 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1721.41    1.36   +0.08     10.08
  Spot Silver        32.44    0.23   +0.71     17.15
  Spot Platinum    1569.49    8.29   +0.53     12.67
  Spot Palladium    607.47    7.07   +1.18     -6.90
  COMEX GOLD DEC2  1722.10    3.00   +0.17      9.91        13013
  COMEX SILVER DEC2  32.47    0.15   +0.46     16.30         4161
  Euro/Dollar       1.2960
  Dollar/Yen         80.01
  COMEX gold and silver contracts show the most active months
 
   

 (Editing by Ed Davies)