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PRECIOUS-Gold slips as U.S. data, stimulus hopes boost equities

* Stock markets bounce on jobs data, stimulus bets
    * Comex gold, silver net longs rise to record highs
    * Platinum rises to 13-month high
    * GRAPHIC-2016 asset returns: reut.rs/1WAiOSC

 (Updates prices, adds comment, second byline, NEW YORK
dateline, pvs LONDON)
    By Marcy Nicholson and Jan Harvey
    NEW YORK/LONDON, July 11 (Reuters) - Gold fell on Monday as
stock markets rallied on the back of Friday's
stronger-than-expected U.S. jobs data and the prospect of more
monetary stimulus from central banks, while the dollar rose
against a basket of currencies. 
    Simmering concerns over the prospect of Britain leaving the
European Union kept gold underpinned, however, keeping prices
within $20 of last week's more than two-year high. 
    Spot gold was down 0.8 percent at $1,355.50 per ounce
by 2:31 p.m. EDT (1831 GMT), having touched its highest since
March 2014 last week at $1,374.91 an ounce.
    U.S. gold futures for August delivery settled down
0.1 percent at $1,356.6 per ounce.
    "New highs in U.S. bonds and the stronger than expected jobs
report have raised the odds of a rate hike later this year,"
said Saxo Bank head of commodities research Ole Hansen. 
    "But the strong response to the weakness post non-farm
payrolls on Friday was a clear signal that buyers are still
lurking around, waiting for the opportunity to pick gold up
cheaper." 
    The S&P 500 touched a record intraday high and the dollar
continued to take support from the U.S. jobs report on Monday,
which saw investors price in the chance of a Federal Reserve
interest rate increase before the end of the year.
  
    A 24 percent chance of an increase by December is now being
priced in, the CME FedWatch tool showed, though the overall view
is still that interest rates will remain unchanged.
    Kansas City Federal Reserve President Esther George said
U.S. interest rates are too low and signaled she could be ready
to restart her push for rate hikes within the Fed's rate-setting
committee. 
    Gold is highly sensitive to U.S. interest rates, increases
in which lift the opportunity cost of holding non-yielding
bullion, while boosting the dollar.
    "This is more of a risk-on day. The Brexit issue seems to be
downplayed a little bit. A new prime minister's been selected,
so things are a little bit better," said Bill O'Neill,
co-founder of LOGIC Advisors.
    U.S. government data showed late Friday that hedge funds and
money managers again raised their net long positions in COMEX
gold and silver contracts to record highs in the week to July 5,
after Britons voted to leave the EU. 
    Silver was up 0.09 pct at $20.28 an ounce. Platinum
 rose as much as 0.7 percent to a 13-month high at
$1,103.80 an ounce, while palladium climbed 1.6 percent
to a two-month high of $625.

    
 (Additional reporting by Nallur Sethuraman in Bengaluru;
Editing by William Hardy and Jonathan Oatis)
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