PRECIOUS-Gold rises 1 pct on dollar tumble ahead of U.S. payrolls

Thu Jun 6, 2013 3:45pm EDT

* Holdings of SPDR Gold Trust stem outflow for now
    * Coming up: U.S. May nonfarm payrolls data Friday

 (Adds comments, market details, updates prices)
    By Frank Tang and Clara Denina 
    NEW YORK/LONDON, June 6 (Reuters) - Gold rose 1 percent on
Thursday as the dollar fell sharply against the yen and the euro
on fears of disappointing U.S. jobs data the next day. 
    After trading mostly flat, gold suddenly turned higher at
midday in New York as investors sold long positions on the
greenback - or bets that the U.S. currency will rise - ahead of
Friday's all-important U.S. nonfarm payrolls numbers. 
    Gold has been under pressure recently on a resurgent dollar
driven by expectations that upbeat data would prompt the U.S.
Federal Reserve to taper its $85-billion-per-month bond-buying
program.
    Worries over an overbought U.S. equities market also
prompted investors to buy more gold, analysts said. 
    "We are starting to see investors being nervous about
holding equities at these levels going forward, so you are going
to see money flow back into the safe-haven markets," said Tom
Power, senior commodities trader at futures brokerage R.J.
O'Brien.
    Spot gold climbed 0.8 percent to $1,414.35 an ounce
by 2:38 p.m. EDT (1838 GMT), off a three-week high at $1,423.16
set earlier in the session. 
    U.S. Comex gold futures for August delivery settled
up $17.30 at $1,415.80 an ounce, with trading volume about 25
percent below its 30-day average, preliminary Reuters data
showed.
    The number of Americans filing new claims for unemployment
benefits fell last week, pointing to moderate job growth despite
slowing economic activity. 
    U.S. economic data has been in the spotlight since Fed
Chairman Ben Bernanke said last month the central bank would
taper off monetary stimulus if the U.S. housing and job markets
showed continued strengthening.
    Economists forecast U.S. job growth probably picked up only
slightly in May, suggesting the economy is still in a rut and
not ready for the Fed to dial back monetary support.
 
    
    INDIA IMPORTS EYED
    Gold failed to extend gains, partly pressured by worries
over physical demand after the Indian government raised import
tax on the metal for the second time this year, to 8 percent on
Wednesday. 
    The appetite for U.S. American Eagle gold and silver bullion
coins is still unprecedentedly high almost two months after a
historic selloff in gold unleashed years of pent-up demand from
retail investors, the head of the U.S. Mint said.
 
    Holdings of SPDR Gold Trust, the largest gold-backed
exchange-traded fund, held steady on Wednesday after falling 0.3
percent in the previous session. Holdings are hovering near
four-year lows. 
    The performance of gold ETFs should recover given brisk
sales of physical bullion products, said Nicolas Berge, a trader
at Geneva-based hedge fund Absolute Capital Group, which invests
in commodities futures and currencies.
    Among other precious metals, silver gained 0.6
percent to $22.65 an ounce, platinum climbed 0.9 percent
to $1,524 an ounce, and palladium rose 0.3 percent to
$757.72 an ounce.
    
 2:38 PM EDT     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold AUG   1415.80  17.30   1.2  1391.20 1423.30  160,982
 US Silver JUL  22.707  0.235   1.0   22.255  22.840   52,870
 US Plat JUL   1529.30  18.70   1.2  1502.10 1534.50   12,226
 US Pall SEP    762.30   5.85   0.8   752.00  764.75    2,348
                                                               
 Gold          1414.35  11.55   0.8  1392.38 1423.16         
 Silver         22.650  0.130   0.6   22.360  22.890
 Platinum      1524.00  14.00   0.9  1506.00 1531.50
 Palladium      757.72   2.22   0.3   753.00  762.00
                                                               
 TOTAL MARKET              VOLUME          30-D ATM VOLATILITY
                CURRENT   30D AVG  250D AVG   CURRENT     CHG
 US Gold        167,001   223,846   181,716     21.27   -0.55
 US Silver       71,918    59,889    55,618     31.09    0.14
 US Platinum     13,335    11,354    11,658     21.47   -0.08
 US Palladium     2,455     6,599     5,573                  
                                                               
  

 (Additional reporting by A. Ananthalakshmi in Singapore;
Editing by James Jukwey, Keiron Henderson, Gunna Dickson and
Dale Hudson)
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