Oct 3 (Reuters) - Gold held steady on Friday and was set
for a seventh straight weekly gain, buoyed by expectations of
further U.S. interest rate cuts this year and worries over the
impact of a U.S. government shutdown.
FUNDAMENTALS
* Spot gold was little changed at $3,851.48 per
ounce, as of 0125 GMT, after hitting an all-time high of
$3,896.49 on Thursday. Bullion has risen 2.5% so far this week.
* U.S. gold futures for December delivery gained
0.2% to $3,875.50.
* The U.S. government shutdown extended to a second day on
Thursday, potentially delaying key economic data releases,
including the closely watched non-farm payrolls (NFP) report due
on Friday.
* Federal Reserve Bank of Dallas President Lorie Logan said
the U.S. central bank appropriately took out some insurance
against any sharp deterioration in the labour market with its
rate cut last month, but needed to be "cautious" with any
further easing.
* However, markets are pricing in a near-certain 25
basis-point cut to the Fed's key interest rate this month,
according to the CME FedWatch tool.
* Gold, often used as a safe store of value during times of
political and financial uncertainty, thrives in a low interest
rate environment. Bullion has risen 47% so far this year.
* The Perth Mint's gold product sales in September jumped
21% from the previous month, while silver sales rose to a
five-month high, the refiner said on Friday.
* SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.31% to 1,015.74
metric tons on Thursday from 1,018.89 tons on Wednesday.
* Elsewhere, spot silver slipped 0.4% to $46.79 per
ounce, platinum fell 0.3% to $1,563.86 and palladium
gained 0.2% to $1,243.41.
DATA/EVENTS (GMT)
0030 Japan S&P Global Comp Op Final SA Sep
0030 Japan S&P Global SVC PMI Final SA Sep
0750 France HCOB Services, Composite PMI Sep
0755 Germany HCOB Services, Composite Final PMI Sep
0800 EU HCOB Services Final, Composite Final PMI Sep
0830 UK S&P GLOBAL PMI: COMPOSITE - OUTPUT Sep
0830 UK Reserve Assets Total Sep
1345 US S&P Global Comp, Svcs PMI Final Sep
1400 US ISM N-Mfg PMI Sep
(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu
Sahu)
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