* Signs of improving U.S. job market spark S&P gain
* Euro rallies versus dollar after ECB comments
* SPDR Gold Trust holdings unchanged after rare inflow
* Coming up: U.S. nonfarm payrolls Friday
(Adds comment, second byline, dateline, updates market
By Frank Tang and Clara Denina
NEW YORK/LONDON, Feb 6 Gold prices fell slightly
on Thursday as Wall Street rallied, but losses were limited by
the euro's gain versus the dollar and caution ahead of the key
U.S. nonfarm payrolls report on Friday.
The metal initially rose on a stronger euro after European
Central Bank President Mario Draghi said there is no euro zone
deflation problem, following the bank's decision to leave
interest rates unchanged.
Bullion later came under pressure after data showed the
number of Americans filing new claims for unemployment benefits
fell more than expected last week, a sign that the job market
and the broader economy are improving. The S&P
500 equities index rose more than 1 percent.
"As the equities market rallied, gold slowly gave back early
gains from dollar weakness. It is not surprising that gold is
lingering around unchanged with the major nonfarm payrolls
report coming out tomorrow," said David Meger, director of
metals trading at Chicago futures brokerage Vision Financial.
Spot gold was down 30 cents at $1,257.35 an ounce by
2:28 p.m. EST (1928 GMT).
On Wednesday, gold rose almost 2 percent to a near two-week
high of above $1,270 after a disappointing U.S. ADP
private-sector job report, but it quickly fell back from that
U.S. COMEX gold futures for April delivery settled up
30 cents at $1,257.20 an ounce. Trading volume was only 85,000
lots, about 55 percent below its 250-day average.
Investors are now eyeing the Friday release of U.S. nonfarm
payrolls data, a key gauge of the labor market, as any setback
in economic growth could prompt the Federal Reserve to slow the
pace of its stimulus tapering.
Concerns about the fragility of stock markets after a heavy
selloff in recent months has piqued some investors' interest in
gold, with the world's largest bullion-backed exchange-traded
fund, the SPDR Gold Trust, reporting a 3.9-tonne inflow on
Tuesday. But holdings remained unchanged on Wednesday.
Platinum was down 0.4 percent at $1,370.82 an ounce.
In South Africa, government-brokered talks between mine union
AMCU and the world's three biggest platinum producers to end a
two week wage strike have been adjourned to allow for individual
Silver edged up 0.3 percent to $19.92 an ounce after
its previous session's 2 percent gain - its biggest one-day jump
in nearly a month. Palladium eased 0.3 percent to $698.60
2:28 PM EST LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold APR 1257.20 0.30 0.0 1252.50 1267.50 81,788
US Silver MAR 19.928 0.123 0.6 19.830 20.180 34,710
US Plat APR 1374.90 -4.40 -0.3 1370.30 1385.80 6,086
US Pall MAR 710.35 3.25 0.5 707.00 715.80 3,169
Gold 1257.35 -0.30 0.0 1253.20 1266.60
Silver 19.920 0.050 0.3 19.870 20.160
Platinum 1370.82 -4.93 -0.4 1372.00 1383.50
Palladium 698.60 -2.40 -0.3 709.00 714.50
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 84,055 169,969 185,679 17.91 -0.62
US Silver 44,017 44,505 56,168 26.6 0.27
US Platinum 6,192 11,000 13,337 19 -0.30
US Palladium 3,784 4,562 5,569 18.36 0.20
(Additional reporting by Jan Harvey in London, A.
Ananthalakshmi in Singapore; Editing by William Hardy and Nick