May 04, 2018

Gold extends gain as dollar slips, investors await US jobs data

(Reuters) - Gold prices rose for a third straight session on Friday as the dollar slipped further from 2018 highs, while investors turned their focus to the upcoming U.S. jobs data for fresh catalysts.

    Spot gold  had risen by 0.2 percent to $1,313.46 per ounce by 0405 GMT, but was headed for a third consecutive weekly decline.

    U.S. gold futures  for June delivery rose 0.1 percent to $1,313.90 per ounce.

    The dollar eased after Thursday's profit-taking and that helped gold find some support, a Hong Kong-based trader said.

    "People are finding some comfort in buying at these levels heading into the weekend with potential risk of these Chinese

talks maybe collapsing," he said.

    The dollar index  was about 0.1 percent lower at 92.367, moving further away from a 2018 peak of 92.834 hit on Wednesday. Asian shares stepped back as financial markets turned their attention to the U.S. payrolls data due later in the day.

    "(Gold) Prices seem to be really slow waiting for the nonfarm payroll data," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

    The U.S. payrolls report for April is likely to underscore the strength in labour market. Nonfarm payrolls likely increased by 192,000 jobs in April after rising 103,000 in March, according to a Reuters survey of economists.

    Meanwhile, a U.S. trade delegation in China has been having very good conversations, U.S. Treasury Secretary Steven Mnuchin said, as he heads into the second and likely last day of the talks in Beijing. 

    Spot gold is biased to bounce more to a resistance at $1,326 per ounce, as suggested by its a projection analysis and a

falling channel, according to Reuters technical analyst Wang Tao. 

    Holding of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.13 percent to 865.60 tonnes on Thursday. 

    Among other precious metals, spot silver rose 0.3 percent to $16.46 per ounce.

    Platinum was up 0.3 percent at $902.00 per ounce. However, it was on track for a third weekly fall.

    Palladium inched up 0.1 percent to $963.00 per ounce.