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PRECIOUS-Gold to snap 4-mth winning run; US data, election eyed
October 31, 2012 / 3:50 AM / 5 years ago

PRECIOUS-Gold to snap 4-mth winning run; US data, election eyed

* Gold seen trading in narrow range in coming days
    * Spot gold may rebound to $1,730/oz -technicals
    * Coming up: euro zone unemployment rate, Sept; 1000 GMT

 (Updates prices)
    By Rujun Shen
    SINGAPORE, Oct 31 (Reuters) - Gold edged up on Wednesday but
was poised to snap a four-month winning streak, with investors
staying on the sidelines ahead of key U.S. employment data and
in the wake of Hurricane Sandy.
    Spot gold was moving in a range of about $3, after trading
little changed in thin volume in the previous session when Sandy
wreaked havoc on much of the eastern United States.
    The precious metal is likely to remain stuck in a tight band
in the coming days, ahead of the release of a key U.S. payrolls
report and next week's U.S. presidential election, traders and
analysts said.
    "There are a lot of event risks -- nonfarm payrolls, the
U.S. election, a change of power in China, plus the routine
policy meetings of various central banks," said a
Singapore-based trader.
    Economists expect U.S. job growth to have picked up slightly
in October, but not enough to prevent the unemployment rate from
rising off a four-year low. 
    Spot gold had inched up 0.1 percent to $1,711.01 an
ounce by 0722 GMT, on course for a monthly drop of more than 3
percent, its biggest one-month decline since May.
    U.S. gold was trading nearly flat at $1,711.60.
    Technical analysis suggested spot gold could rebound to
$1,730 an ounce as it has climbed above a falling channel, said
Reuters market analyst Wang Tao. 
    Investors are waiting for the result of next week's
presidential election to get a fuller picture of what the next
government will do to help economic growth.
    "People wonder if (Mitt) Romney is going to be in power and
what kind of monetary policy we will have. He is clearly not in
favour of what the Fed is doing," said Dominic Schnider, an
analyst at UBS Wealth Management in Singapore.
    But he said the looming fiscal cliff -- automatic tax hikes
and government spending cuts starting the beginning of next year
if the U.S. Congress fails to act -- will be supportive of gold.
    "I don't think they will come to an easy agreement on how to
handle things, which could be ... negative for the dollar and
quite supportive of gold."
    In industry news, the violence in South Africa's mining
sector continued. Police fired rubber bullets and tear gas on
Tuesday at striking Amplats miners who were protesting
against a union-brokered deal to end a six-week wildcat walkout
at the top platinum producer. 
      Precious metals prices 0722 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1711.01    2.13   +0.12      9.41
  Spot Silver        31.88    0.07   +0.22     15.13
  Spot Platinum    1550.24    2.74   +0.18     11.29
  Spot Palladium    598.10    4.60   +0.78     -8.34
  COMEX GOLD DEC2  1711.60   -0.50   -0.03      9.24        10765
  COMEX SILVER DEC2  31.91    0.09   +0.28     14.29         2372
  Euro/Dollar       1.2948
  Dollar/Yen         79.66
  COMEX gold and silver contracts show the most active months

 (Editing by Joseph Radford)

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