RTRS:PRECIOUS-Gold heads for weekly loss after Obama's $447 bln jobs plan
* Gold to remain sideways-technicals
* Coming Up: France industrial output July; 0645 GMT
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Sept 9 (Reuters) - Gold bounced back in volatile
trade after hitting its lowest level on Friday, but it was
heading for a weekly loss as investors digested plans by U.S.
President Barack Obama to spur economic growth which could dent
bullion's safe-haven appeal.
Although the lingering debt crisis in Europe and volatile
currencies are supportive for gold, the metal could take its cue
from Obama's $447 billion jobs proposal.
Spot gold hit an intraday low of $1,853.39 an ounce
before rising 0.33 percent to $1,874.40 an ounce by 0644 GMT,
which was still below a lifetime high of around $1,920 hit this
week.
"I think Obama's speech was actually better than expected.
The market was pricing in for a $300 billion dollar package,"
said Natalie Robertson, a commodities strategist at ANZ.
"Also a senior Republican said the proposal merits
consideration, so that could also be seen as a sign the
Republicans could pass the bill. The risk for gold is to the
downside, but I think it will settle at around $1,800 to
$1,810."
Other markets shrugged off the speech and instead focused on
economic data from China, with the Nikkei down more than 2
percent for the week and the dollar index off two-month highs.
U.S. gold futures GCcv1 jumped more than 1 percent to a
high of $1,880, which helped pluck cash gold from intraday lows.
European stock index futures fell on Friday, following Asian
markets lower, as Obama's jobs package failed to entice
investors back into equities amid concerns that it could be
hamstrung by political wrangling.
Gold, which shrugged off China's inflation data for August,
which was within market expectations, is likely to look to U.S.
stocks for direction.
"Let's see how the U.S. stocks react, and I think nobody
wants to go short at around these levels," said a physical
dealer in Hong Kong. "We don't see much selling in the physical
market, but investors do take profits at high levels."
Investors turned their attention again to the state of the
U.S. economy after Federal Reserve Chairman Ben Bernanke said
the U.S. central bank "will do all it can" to boost economic
growth and reduce unemployment, but disappointed investors by
not offering details.
The uncertainties about global economic growth have driven
gold prices to scale record highs since July, and are expected
to underpin sentiment for the metal until investors are
convinced the danger of recession is past.
"The lack of details on the further stimulus plans that the
Fed could pursue may prompt some short-term profit taking in
gold. However, in the long term, I think gold remains attractive
amidst slowing growth and economic uncertainty," said Ong Yi
Ling, an analyst at Phillip Futures.
"Time will be needed before the measures proposed by
President Obama are implemented and translate into growth.
Effects will be lagged and it's not going to improve the job
markets so quickly."
In the energy market, Brent crude oil edged up towards $115
a barrel on Friday, after falling more than a dollar in the
previous session, supported by storm threats and Obama's plan to
revive the economy of world's largest oil consumer.
