LONDON—The spot price of gold edged up, but trading should stay muted ahead of the closely-watched U.S. jobs report.
Spot gold recently was up $6.10, or 0.4%, at $1,391 a troy ounce.
A Dow Jones survey of economists is tipping a rise of 144,000 U.S. nonfarm payrolls, and commodity analysts have said they don't expect the figures to disappoint after strong ADP employment data earlier in the week. But, even if the report further boosts sentiment for riskier commodities, analysts expect the so-called safe-haven asset to remain well-bid.
The market has continued to test $1,400 amid rising risk appetite, having run up to a high of $1,396.98 an ounce Wednesday and $1,398.62 an ounce Thursday.
"With the bullish momentum break [through $1,382/oz earlier this week] confirming strength, we look for the market to extend through the $1,400/oz area to test the all-time high at $1,425/oz and then our initial target at $1,440/oz," Barclays Capital technical analysts said in a daily report.
The bank also is sticking by its earlier targets of $1,459/oz-$1,485/oz before the year-end.
Earlier this week, Goldman Sachs said it expects gold prices to trend higher in 2011, supported by a fresh round of quantitative easing in the U.S., before peaking around $1,750 a troy ounce in 2012.
But a report from RBS metal analysts Friday is a little more bearish on the outlook. The bank said while it expects gold investment demand to be supported by "the vocal inflation contingent in emerging markets" and improved access to gold investment opportunities in China, positive sentiment may be undermined by a number of other factors in 2011.
"The RBS equity strategists expect 2011 to be a strong year for world equity markets; as such gold could suffer from a reversal in safe haven buying in Europe and the U.S.," it said. "Our [foreign exchange] strategists also forecast the dollar to strengthen by 10% against the euro over the next 18 months. A stronger U.S. dollar is usually bearish for gold."
The temptation to sell may also be too great for central banks in the year ahead, RBS said. While it doesn't tip a price collapse, it expects "a pause for breath in 2011 as the pendulum swings against gold."
Other precious metals were mostly higher. Spot silver was up 19 cents, or 0.7%, at $28.73 an ounce and spot platinum traded up $6, or 0.4%, at $1,717 an ounce. But spot palladium was off $1, or 0.1%, at $759 an ounce.
