Gold and silver rebound ahead of US jobs report

The shiny metal rebounded on Friday trading, paring some of its sharp losses incurred this week, as the dollar cooled down and market approaches US jobs report.

The previous session, gold shed $43.40 or 2.86% after closing at $1474.10 an ounce, while gold price was setin London at $1511.00 per ounce declining from $1514.00 during the AM fixing.

Spot gold is trading at $1487.80 an ounce after recording a high of $1490.00 and a low of $1470.85.

Crude oil inched down to $99.25 compared with the day's opening level of $99.60.

The US dollar advanced for the third consecutive session yesterday after both ECB and BoE had kept their monetary policy on hold, where Trichet's comment on dollar helped it to rise, pushing commodities prices down which in turn affected global stocks negatively.

The dollar index, which tracks the dollar movements versus a basket of major currencies, fell to a low of 73.94 compared with the day's opening of 74.08.

Meanwhile, eyes are on the latest development in the US economy as there are some concerns of weak recovery this year due to the sluggish growth in the US and tightening by China and emerging economies which actually may give gold the chance to rebound again, targeting new record high as a safe haven asset.

As of 12:30 GMT, the change in non farm payrolls will reach 185,000 from the previous 216,000 while unemployment will linger at 8.8%, according to median forecasts.

The data will be awaited by investors after other related US data released this week showed that the private sector added 179,000 jobs in April from 201,000 in March while initial jobless claims showed an unexpected rise in the number of people seeking jobless benefits to 474,000 compared with the revised 431,000 a week before.

On the other hand, silver ticked up today after dropping to one-month low the previous session following the fourth rise by the CME group on COMEX silver futures margins that will started to be effective yesterday and next Monday which increased the cost of trading silver.

Among other precious metals, platinum edged down to $1789.20 from the day's opening of $1796.20, palladium plunged to $711.70 from $714.70 and silver inched up to $35.20 from $35.12, as of 07:15 GMT.