PRECIOUS-Gold see-saws in tight range as focus stays on U.S. labour data
Recasts, adds comment, updates prices
By Arundhati Sarkar
Sept 1 (Reuters) - Gold traded within a narrow range on Wednesday, as investors largely looked past a slew of U.S. economic readings to focus on key labour data that could influence the Federal Reserve's tapering plans.
Spot gold XAU= was little changed at $1,812.51 per ounce by 10:40 am EDT (1440 GMT), while U.S. gold futures GCv1 eased 0.3% to $1,813.30.
Bullion largely tracked moves in the dollar .DXY, which retreated slightly after the ADP National Employment Report showed U.S. private employers hired far fewer workers than expected in August, but subsequently pared some of those losses on data showing an uptick in manufacturing. nN9N2NL018
The greenback's moves influence gold since they make bullion cheaper or expensive for those holding other currencies. USD/
While gold did get a little boost from the dollar's initial retreat, "the trend suggests it's getting exhausted," said Bob Haberkorn, senior market strategist at RJO Futures
Also, the boost gold got from the Fed last week after Chair Jerome Powell said that although tapering could begin this year, the central bank would take a cautious approach to raising interest rates, is starting to die out, thanks to expectations for a strong number in Friday's jobs data, Haberkorn added. nL1N2PY1FI
Bullion, considered a hedge against inflation and currency debasement had gained on the back of massive stimulus from global central banks. Higher interest rates translate into increased opportunity cost for holding non-yielding bullion.
Economists polled by Reuters predicted the U.S. non-farm jobs report for August on Friday would show payrolls increased by 750,000.
If the data exceeds expectations, this might lead to a stronger dollar and put "some pressure on gold", said Commerzbank analyst Daniel Briesemann.
Meanwhile, silver XAG= rose 1.2% to $24.16 per ounce, while platinum XPT= eased 1.2% to $1,000.25. Palladium XPD= fell nearly 1% to $2,442.65.
(Reporting by Arundhati Sarkar in Bengaluru; Editing by Vinay Dwivedi)
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