* COMEX option expiry on Thursday spurs buying * Open interest in options near record levels * Market awaits U.S. jobs data (Updates prices) By A. Ananthalakshmi SINGAPORE, July 25 (Reuters) - Gold mostly reversed earlier losses on Thursday as investors pulled bearish bets ahead of a COMEX option expiry and awaited U.S. jobs data later in the day to help gauge the outlook for the Federal Reserve's stimulus measures. Positive housing data from the United States that dented bullion's safe-haven appeal and raised fears of an early end to the Fed stimulus kept the metal's gains in check. A sharp sell-off in gold prices since mid-April has sparked growing interest in using gold options to profit from increased volatility. The open interest in U.S. COMEX gold options rose to a record high of more than 1.8 million contracts earlier this week, according to COMEX owner CME Group. "There is a big open interest around $1,300 and $1,310 which might stall the sell-off," said a Hong Kong-based trader. Prices tend to be volatile around option expirations as traders position themselves to profit around key price levels. Spot gold fell 0.07 percent to $1,319.76 an ounce by 0702 GMT, after falling as much as 0.4 percent earlier. COMEX gold was up slightly at $1,319.90. Traders were also reluctant to take big bets ahead of U.S. weekly jobless claims data to be released at 1230 GMT. Economic data has become a key factor in determining when the Fed would start tapering its $85 billion monthly bond purchases. Gold had risen nearly 6 percent for the four sessions through Tuesday - its biggest such rally in 20 months - but fell sharply after data showed new U.S. home sales vaulted to a five-year peak in June. "The housing numbers yesterday really took the wind out of gold's rally. If the jobless claims numbers are supporting on the tapering side, that will be very bearish for gold," said the trader. Global central banks' stimulus measures have been a key support for gold over the past few years. Bullion has lost more than 20 percent of its value this year - its worst annual performance since 1997 - on fears of a Fed tapering and rapid outflows from exchange-traded gold funds. SPDR Gold Trust, the world's largest gold-backed ETF, has seen outflows of over $17 billion so far this year. Precious metals prices 0702 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1319.76 -0.93 -0.07 -21.19 Spot Silver 20.06 -0.08 -0.40 -33.75 Spot Platinum 1434.24 -8.68 -0.60 -6.56 Spot Palladium 738.47 -5.68 -0.76 6.72 COMEX GOLD AUG3 1319.90 0.40 +0.03 -21.24 20618 COMEX SILVER SEP3 20.07 0.05 +0.22 -33.79 4295 Euro/Dollar 1.3212 Dollar/Yen 99.84 COMEX gold and silver contracts show the most active months

Source