* Technicals point spot gold moving back to $1,315
* Silver hits over two-week high
* Platinum, palladium touch one-week highs
By Sethuraman N R
Sept 6 Gold held steady on Tuesday as the dollar
weakened on expectations that the U.S. Federal Reserve will not
raise rates in September, but the yellow metal's gains were
limited by stronger equity markets.
Spot gold was slightly up at $1,327.80 per ounce by
0658 GMT. The metal rose 0.1 percent on Monday.
U.S. gold futures were up 0.4 percent at $1,331.40.
The fact that gold did not move much despite disappointing
U.S. nonfarm payroll numbers reflects the extensive level of
speculative position in the gold markets either through futures
or exchange traded funds, said Dominic Schnider of UBS Wealth
Management in Hong Kong.
"The idea that the Fed is going to move, if not in September
but in October, is limiting people from buying gold," he said,
adding that prices could drop below $1,300 in the short term,
with a good resistance level of $1,275.
Money managers held a net-long position of 231,594 U.S. gold
futures contracts in the week to Aug. 30, the Commodity Futures
Trading Commission said on Friday. That's up from 40,597
contracts a year ago.
The U.S. Labor Day holiday kept volumes subdued on Monday.
New U.S. data releases and any speeches from Fed officials will
be watched closely for clues to the timing of any rate hikes.
Gold could run into upside headwinds as the U.S. jobs number
was not excessively weak and recent Fed official's comments have
been hawkish, HSBC analyst James Steel said in a note.
However, if oil prices can gain upward traction on an
agreement between top producers Saudi Arabia and Russia to
cooperate in world oil markets, gold may be a beneficiary, Steel
Crude prices extended gains on Tuesday, buoyed after top
producers Russia and Saudi Arabia agreed to cooperate on
stabilising the oil market.
Asian shares advanced on Tuesday, while the dollar index,
which measures the greenback against a basket of six major
currencies, slipped 0.2 percent to 95.688.
Spot gold may retrace to a support at $1,315 per ounce, as
it failed to break a resistance at $1,330 again, according to
Reuters technical analyst Wang Tao.
South Africa's biggest platinum mine-workers' union and the
industry have failed to reach a deal on workers' pay, the union
said on Monday, raising the prospect of industrial action in the
world's top producer of the white metal.
Spot silver touched an over 2-week high of $19.57 an
Platinum was up 0.9 percent at $1,078.40 an ounce. It
hit a one-week high of $1,078.80 earlier in the session.
Palladium rose 0.8 percent to $683.90. It earlier touched
a near one-week high of $685.20.
(Reporting By Nallur Sethuraman in Bengaluru; Editing by
Christian Schmollinger and Gopakumar Warrier)