Gold little changed ahead of non-farm payrolls report

Gold little changed on Friday trading ahead of non-farm payrolls report which is expected to have significant impact on market.

The previous session, gold shed $5.30 or 0.34% after closing at $1533.37 an ounce, while gold price was setin London at $1539.50 per ounce declining from $1540.75 during the AM fixing.

The shiny metal may end the week on gains, taking advantage of concerns spreading in markets stemming from the mounting debt concerns from Greece and slowdown in global recovery.

EU and IMF officials will meet today to review the Greek 78 billion euros asset sales and austerity measures before launching a second bailout package, where the decision will be made by the end of the current month, according to Jean-Claude Junker who heads European Finance Ministers.

This week, Fitch mentioned that Greece will probably get another aid from the EU and IMF, expectations refer to 30 billion euros, to avert the default scenario, while Moody's Investor Services raised the possibility of Greek default to 50%, downgrading Greece's credit rating to Caa1 from B1 as the Greek government may find difficulty in cutting spending further.

On the other hand, gold may benefit from the slowdown in global recovery seen from second-quarter data as manufacturing slowed down in China, UK, euro area and US, where eyes today will be on services data from major economies to provide a clearer picture about the status of the key sectors.

However, the main highlight of the day is the infamous US jobs report which will be waited by investors after a parade of downbeat data from the US over the past few weeks.

Earlier this week, ADP employment change showed that the private sector added only 38,000 in May from the revised 177,000 in April, initial jobless claims slipped today to 422,000 in the week ended May 28 from the revised 428,000 a week before. Today, the change in non farm payrolls will reach 195,000 in May from the previous 244,000 while unemployment will retreat to 8.8% from 9.0%, according to median estimates.

The grim reports from the US put downside pressure on the US dollar which is girding for the third consecutive weekly decline. The dollar index, which tracks the dollar movements versus a basket of major currencies, is showing a slight incline ahead of the NFP report as it rose to a high of 74.40 compared with the day's opening level of 74.31.

Yet, movements in the market remain within narrow range as investors will probably step in after the NFP report.

Spot gold is traded at $1528.00 an ounce after reaching a high of $1534.82 and a low of $1527.70., while oil edged down to $99.65 a barrel from the day's starting level of $100.86.

Among other precious metals, sliver dipped to $35.45 from the day's opening of $36.08, platinum retreated to $1807.20 from $1811.00 and palladium slipped to $763.50 from $764.50, as of 07:20 GMT.