November 3, 2017 / 3:53 AM / 2 years ago

PRECIOUS-Gold little changed amid steady dollar ahead of U.S. jobs report

    * Spot gold looks neutral in $1,263-$1,281/oz range-
technicals
    * Gold set for first weekly gain in three

 (Updates prices, adds comment)
    By Arpan Varghese
    Nov 3 (Reuters) - Gold prices traded in a narrow range on
Friday, below the previous session's high, as the dollar
steadied amid caution ahead of U.S. jobs data later in the day.
    Spot gold        was mostly unchanged at $1,275.82 per ounce
at 0657 GMT, and was on track for its first weekly gain in
three. It hit its highest in about two weeks at $1,284.10 in the
previous session.
    U.S. gold         for December delivery dipped 0.1 percent
to $1,276.50.  
    The dollar held steady versus a basket of currencies on
Friday, as focus shifted to U.S. jobs data, with President
Donald Trump's nomination of Federal Reserve Governor Jerome
Powell to be the next Fed chair coming as no surprise.       
    The greenback had slipped on Thursday after Republicans in
the U.S. House of Representatives released proposals to overhaul
the tax code.        
    Asian share markets edged higher on Friday as investors gave
a guarded reception to the plans for massive U.S. tax cuts,
while welcoming the appointment of a centrist at the helm of the
Fed.                         
    A holiday in Japan kept volumes light, while investors
observed the usual caution ahead of the U.S. payrolls report
which is expected to show a big bounce back from September's
hurricane-hit result.
    "Gold seems to be broadly flat. The announcement of Jerome
Powell as the new Fed Chair was broadly in line with
expectations," said John Sharma, an economist with National
Australia Bank. 
    "Markets are waiting for the U.S. payrolls data. A strong
result here would not be supportive of gold."
    Trump's appointment of Powell broke with precedent by
denying Janet Yellen a second term but signalling a continuation
of her cautious monetary policies.             
    "The general trend for gold over the last week has been
positive, but the market will need to find a catalyst within the
host of data released tonight to push through the strong
resistance at $1280," MKS PAMP analyst Tim Brown wrote in a
note.
    "On the downside, we should see close support at the 100-day
moving average at $1,275."  
    Spot gold        looks neutral in a narrow range of
$1,263-$1,281 per ounce, and an escape could suggest a
direction, according to Reuters technical analyst Wang Tao.
            
    In other precious metals, spot silver        inched 0.1
percent lower to $17.09 an ounce and platinum        eased 0.3
percent to $921.74 while palladium        was up 0.1 percent at
$997.

 (Reporting by Arpan Varghese in Bengaluru; Editing by Richard
Pullin and Vyas Mohan)
  
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