PRECIOUS-Gold steady, eyes U.S. jobs data, EU meeting

* Market awaits Europe meeting next week
    * Spot palladium on course for biggest weekly gain in 3
years
    * Spot gold could fall to $1,722 - technicals
    * Coming up: U.S. nonfarm payrolls, November; 1330 GMT

 (Updates prices) 
    By Rujun Shen 
    SINGAPORE, Dec 2 (Reuters) - Spot gold was steady on
Friday, after the euphoria around a coordinated effort to inject
liquidity by central banks faded, ahead of a U.S. employment
report later today and a key euro zone summit next week. 
    The U.S. non-farm payrolls data is expected to show a pickup
in hiring in November, which could add to expectations of
stronger growth in the world's largest economy, just as
manufacturing data in the euro zone and much of Asia contracted
in November, pointing to a global slowdown.
   
    News from Europe will continue to dominate sentiment.
Markets rallied earlier in the week after the world's major
central banks joined force to boost liquidity, but the momentum
quickly faded as investors realised that it could not solve
Europe's debt problems. 
    "The central banks' move reinforced the perception that
liquidity crunch is a big problem," said Hou Xinqiang, an
analyst at Jinrui Futures, adding that gold's property as a safe
haven has been overlooked in recent months and the gloom hanging
over the global economy is likely to suppress gold's sentiment. 
    "Liquidity is the focus of the market. Gold's appeal as a
safe haven may return only when liquidity improves and market
sentiment warms up." 
    Spot gold edged down 0.1 percent to $1,742.20 an
ounce by 0709 GMT, but is on course to rise 3.7 percent from a
week earlier, its biggest weekly gain in a month. 
    U.S. gold inched up 0.4 percent to $1,746.30. 
    Technical analysis suggested spot gold could drop to $1,722
during the day, said Reuters market analyst Wang Tao.
  
     
    Investors will closely watch the European Council summit
next week. The new head of the European Central Bank signalled
that it stood ready to act more aggressively to fight the debt
crisis if policymakers agree on much tighter budget controls in
the euro zone.  
    Supporting the sentiment in gold, South Korea's central bank
bought 15 tonnes of gold in November, following purchases of 25
tonnes in June and July, as central banks around the world,
especially in emerging economies, have aggressively bought
bullion over the past few months.  
    "It's not a surprise, as gold seems to be the only thing
central banks can buy to diversify their reserves as economic
problems seem to spread around the world," said Ronald Leung, a
physical dealer at Lee Cheong Gold Dealers. 
    Norilsk Nickel expects autocatalyst metal
palladium to be in a deficit in 2012 due to sharply lower
Russian supplies, the world's biggest palladium producer's
marketing chief said on Thursday.  
    Spot palladium gained 1.4 percent to $634.22, on
course for its biggest weekly gain since November 2008 with a
12.8 percent rise. 
     
    Precious metals prices 0709 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1742.20   -1.54   -0.09     22.74
  Spot Silver        32.78    0.06   +0.18      6.22
  Spot Platinum    1552.74   -2.51   -0.16    -12.15
  Spot Palladium    634.22    8.92   +1.43    -20.67
  TOCOM Gold       4372.00   10.00   +0.23     17.24        50146
  TOCOM Platinum   3923.00   21.00   +0.54    -16.46         8141
  TOCOM Silver       81.90    0.80   +0.99      1.11          370
  TOCOM Palladium  1601.00   66.00   +4.30    -23.65          311
  COMEX GOLD FEB2  1746.30    6.50   +0.37     22.86        11627
  COMEX SILVER MAR2  32.87    0.11   +0.32      6.22         1105
  Euro/Dollar       1.3462
  Dollar/Yen         77.78
  TOCOM prices in yen per gram. Spot prices in $ per ounce.
  COMEX gold and silver contracts show the most active months 

Source: http://www.reuters.com/article/2011/12/02/markets-precious-idUSL4E7N20BJ20111202