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PRECIOUS-Gold clings to range ahead of US jobs data; SPDR holdings drop

Monday, 21 Oct 2013 | 8:38 PM ET

SINGAPORE, Oct 22 (Reuters) - Gold hovered in a tight range on Tuesday as traders awaited the release of U.S. jobs data to gauge the strength of an economic recovery, while the market was also on edge as holdings in the biggest gold exchange-traded fund dropped the most in 15 weeks.

FUNDAMENTALS

* Spot gold slipped 0.07 percent to $1,314.19 an ounce by 0013 GMT, after ending flat in the previous session.

* The metal had gained nearly 4 percent last week on hopes that the budget debate in Washington would delay a stimulus tapering by the Federal Reserve.

* It will be "tough" for the Fed to have sufficient confidence in the strength of the U.S. recovery by its meeting in December to start scaling back a massive Fed bond-buying campaign, a senior U.S. central banker said.

* Investors looked towards U.S. nonfarm payrolls data, which is due on Tuesday after being delayed by a partial government shutdown earlier this month, to gauge the fate of the Fed's stimulus.

* Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 10.51 tonnes to 871.72 tonnes on Monday -- its biggest fall since early July. The fund's flows are closely watched to judge market sentiment.

* Gold importers in India struggled to get supplies paying record premiums just ahead of the peak festival season next month.

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MARKET NEWS

* Asian shares steadied at a five-month high, while the dollar held above eight-month lows.

DATA/EVENTS (GMT) 0200 China House prices 1145 U.S. ICSC weekly chain store sales 1230 U.S. Unemployment rate 1230 U.S. Nonfarm payrolls 1300 U.S. Net capital flows 1400 U.S. Construction spending 1400 U.S. Richmond Fed composite index

Precious metals prices 0013 GMT

Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1314.19 -0.95 -0.07 -21.52 Spot Silver 22.15 -0.04 -0.18 -26.85 Spot Platinum 1430.24 -2.56 -0.18 -6.82 Spot Palladium 748.22 1.22 +0.16 8.12 COMEX GOLD DEC3 1314.50 -1.30 -0.10 -21.56 891 COMEX SILVER DEC3 22.20 -0.08 -0.37 -26.76 364 Euro/Dollar 1.3674 Dollar/Yen 98.15

COMEX gold and silver contracts show the most active months

(Reporting by A. Ananthalakshmi; Editing by Ed Davies)