PRECIOUS-Gold holds steady as traders wait for key US economic data

Reuters11-01

Nov 1 (Reuters) - Gold prices steadied on Friday as market focus shifted to a crucial U.S. payrolls report for better clarity into the extent of an expected rate cut this month.

FUNDAMENTALS

* Spot gold edged up by 0.1% to $2,746.30 per ounce, as of 0028 GMT. Bullion marked a monthly rise of 4.15% in October and hit a record high of $2,790.15 in the previous session.

* U.S. gold futures rose 0.3% to $2,756.20.

* Data on Thursday showed U.S. consumer spending increased slightly more than expected in September, putting the economy on a higher growth trajectory heading into the final quarter of the year.

* Additionally, the number of Americans filing new applications for unemployment fell last week as distortions from recent hurricanes faded.

* Attention now turns to closely watched nonfarm payrolls report due later in the day and the U.S. presidential election on Tuesday, which has entered its final stretch — with opinion polls too close to call a winner.

* With inflation slightly above the Federal Reserve's 2% target and easing wage pressures, U.S. central bankers are anticipated to lower short-term borrowing costs next week to support the labor market.

* Traders anticipate nearly a 94% chance of a quarter-basis-point Fed rate cut next week, the CME FedWatch tool showed.

* Gold is considered a safe investment during economic and geopolitical turmoil due to its ability to store value; it thrives in a low interest rate environment.

* SPDR Gold Trust , the world's largest gold-backed ETF, said its holdings fell 0.10% to 891.79 tonnes on Thursday.

* Spot silver rose 0.2% to $32.71 per ounce, platinum

gained 0.5% to $992.17 and palladium added 0.9% to $1,115.66.

DATA/EVENTS (GMT) 0030 Japan JibunBK Mfg PMI Final SA Oct 0145 China Caixin Mfg PMI Final Oct 0700 UK Nationwide House Price MM Oct 0700 UK Nationwide House Price YY Oct 0930 UK S&P Global Manufacturing PMI Oct 1230 US Non-Farm Payrolls Oct 1230 US Unemployment Rate Oct 1230 US Average Earnings YY Oct 1345 US S&P Global Mfg PMI Final Oct 1400 US ISM Manufacturing PMI Oct

(Reporting by Daksh Grover in Bengaluru; editing by Alan Barona)

((Daksh.Grover@thomsonreuters.com))

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