RTRS: PRECIOUS-Gold prices edge higher ahead of U.S. jobs data
* Gold finds its feet after Wednesday's hefty drop
* Concerns over Syria strikes simmer, supporting prices
* Chinese gold imports from Hong Kong rise in July (Updates prices)
By Jan Harvey
LONDON, Sept 5 (Reuters) - Gold edged higher on Thursday after the previous day's sharp drop, as the dollar pared gains against a currency basket ahead of key U.S. jobs data likely to provide clues on the outlook for Federal Reserve policy.
Spot gold prices fell 1.5 percent on Wednesday after upbeat U.S. data lifted stocks and as oil prices fell on expectations that a military strike against Syria - which helped lift gold to 3-1/2 month high last week - would remain limited.
It found its feet on Thursday as a retreat in the dollar index from early highs pulled prices back above $1,390 an ounce.
Spot gold was up 0.3 percent at $1,395.10 an ounce at 1134 GMT, up from an early low of $1,381.06. U.S. gold futures for December delivery were up $5 an ounce at $1,395.00.
A 15 percent drop in gold prices this year has been driven largely by speculation the Federal Reserve will start reducing its quantitative easing programme, with an announcement foreseen at its September 17-18 meeting.
"The fact we are now less than two weeks away from the very eagerly awaited Fed meeting (means) some longs have been reduced, putting the metals on the back foot," Saxo Bank head of commodity strategy Ole Hansen said.
"I'm looking for a $1,379 to $1,397 range today. A break below Monday's low will obviously test the resolve in the market, but I think support will be found ahead of key support towards $1,350, leaving gold rangebound in the near term."
European shares climbed and government bond yields were at near 1-1/2 year highs on a combination of a better global economic outlook and nervousness about Syria. The dollar surrendered early gains to steady, however.
U.S. JOBS DATA IN FOCUS
Analysts are awaiting U.S. jobs data due later for clues as to the outcome of Friday's U.S. non-farm payrolls report, seen as a barometer of the U.S. recovery. Payrolls processor ADP releases its August employment report at 1215 GMT.
The European Central Bank is due to make a statement later which will be watched for any shift in monetary policy. The Bank of Japan earlier maintained its stimulus programme, while the Bank of England announced no changes to interest rates or its bond-buying programme.
Hong Kong's gold exports to China rose to 129.232 tonnes in July from 111.718 tonnes in June, data from the Hong Kong government showed on Thursday.
Among other precious metals, silver was up 0.4 percent at $23.53 an ounce, while spot platinum was up 0.3 percent at $1,492.99 an ounce. Spot palladium was down 0.4 percent at $692.75 an ounce.
Platinum miners in South Africa, the source of three-quarters of world platinum supply, are watching the progress of pay negotiations in the gold sector.
Shares of South African gold producers rose more than 4 percent on Thursday as investors bet unions and management would soon reach an agreement over wages, ending a strike by tens of thousands of miners.
"The platinum price fell very sharply yesterday, and you can in part attribute that to the fact that this strike doesn't seem to have legs," Macquarie analyst Matthew Turner said. (Editing by Jason Neely and James Jukwey)