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PRECIOUS-Gold little changed after ECB; U.S. labor data in focus

* Dollar turns up a shade back toward two-month highs
    * Silver near lowest since mid-April
    * ECB leaves rates unchanged as expected
    * All eyes on U.S. nonfarm payrolls on Friday

 (Updates prices; adds comment, byline, NEW YORK dateline)
    By Marcy Nicholson and Clara Denina 
    NEW YORK/LONDON, June 2 (Reuters) - Gold was little changed
on Thursday as the dollar turned positive after the European
Central Bank said it made only marginal upward adjustments to
its inflation projections, while investors remained cautious
ahead of U.S. labor data.
    The bank kept interest rates unchanged and ECB President
Mario Draghi said inflation would likely remain very low or
negative in the next few months.  
    Spot gold was down 0.1 percent at $1,210.96 an ounce
by 1:54 p.m. EDT (1754 GMT). U.S. gold futures settled
down 0.2 percent at $1,212.60.
    "You're kind of range bound until you're clear on what the
trend is of the Fed and of the dollar," said Rob Haworth, senior
investment strategist for U.S. Bank Wealth Management in
Seattle.
    "You don't have any new news to change your view on Janet
Yellen or what the Fed will do, and the big news is the job
report tomorrow."
    Investors will now focus on U.S. nonfarm payrolls data on
Friday. A solid reading could heighten expectations for a U.S.
interest rate move as early as the Federal Reserve's June 14-15
policy meeting. 
    "People are looking for confirmation whether the likelihood
of a summer rate hike is going to increase even further," Julius
Baer analyst Carsten Menke said.
    "As long as fears of a summer rate hike are kept alive by
the incoming macro data, the odds are much higher that
speculators move away from the long side in the gold market."
    Gold has taken a beating after the latest Fed meeting
minutes released in May, and comments from key central bank
officials, including Fed Chair Janet Yellen, boosted
expectations of an imminent rate rise. 
    Higher interest rates increase the opportunity cost of
holding non-interest yielding gold, while bolstering the dollar.
    On Thursday, the euro declined while stock prices across
major markets fell near one-week lows and the U.S. dollar index
 turned up around 0.05 percent.  
    Data showed U.S. private payrolls increased a
less-than-expected 173,000 in May. 
    Holdings in SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, rose 0.24 percent to 870.74
tonnes on Wednesday, the highest since November 2013. 
    Spot silver rose 0.5 percent to $16.01 per ounce,
after slipping to $15.77 on Wednesday, its lowest since April
12. Spot platinum fell as much as 1.4 percent at $953,
its lowest since April 8, while palladium fell 2.1
percent to $533.23.

 (Additional reporting by Koustav Samanta in Bengaluru; Editing
by William Hardy and James Dalgleish)
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