* GDP data sent gold below $1,300 to three-week low on Thursday
* Gold down about 0.4 percent on the week
* Coming up: U.S. nonfarm payrolls at 1330 GMT
By A. Ananthalakshmi
SINGAPORE, Nov 8 Gold was trading near three-week lows on Friday
and heading for a second straight weekly loss after strong U.S. economic growth
sparked fears the U.S. Federal Reserve may scale back its bullion-friendly bond
purchases this year.
U.S. gross domestic product grew at a 2.8 percent annual rate in the third
quarter, the quickest pace in a year, after expanding 2.5 percent in the second
Investors are now waiting for U.S. nonfarm payroll data later in the day for
further direction and clues on the timing of the tapering of the Fed's economic
"There is not much interest in gold for the time being," said Ronald Leung,
chief dealer at Lee Cheong Gold Dealers in Hong Kong.
"Everyone is waiting for the nonfarm payroll data today. There doesn't seem
to be much good news for gold lately."
Spot gold edged up 0.15 percent to $1,309.56 an ounce by 0737 GMT,
supported by a drop in Asian equities.
The metal has lost 0.4 percent for the week, having hit a three-week low of
$1,298.31 on Thursday.
Gold has lost about a fifth of its value this year due to fears the Fed
would begin cutting back its $85 billion monthly bond purchases. The metal's
inflation-hedge appeal has been burnished by the bond purchases and low interest
Investors had believed a prolonged budget battle in Washington in October
would prevent the Fed from withdrawing support for the economy and possibly push
the tapering into next year. However, Thursday's GDP data rekindled fears of a
roll-back at the Fed's December meeting.
"We expect relatively subdued trading today around the current level of
$1,309 until closer to the nonfarm payrolls tonight," ANZ analysts said in a
A stronger-than-expected report would probably see expectations for Fed
tapering pulled forward from the first quarter of 2014 and push the U.S. dollar
higher, they said.
Precious metals prices 0737 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1309.56 2.01 +0.15 -21.80
Spot Silver 21.69 0.05 +0.23 -28.37
Spot Platinum 1451.30 2.55 +0.18 -5.45
Spot Palladium 757.74 -0.98 -0.13 9.50
COMEX GOLD DEC3 1309.50 1.00 +0.08 -21.86 12159
COMEX SILVER DEC3 21.71 0.05 +0.22 -28.38 3053
COMEX gold and silver contracts show the most active months
(Reporting by A. Ananthalakshmi; Editing by Richard Pullin and Alan Raybould)