* Gold heads for third consecutive weekly decline
* Stronger than expected jobs data could lift gold
* Spot gold could bounce to $1,326/oz -technicals
(Adds analyst comment, updates prices, changes dateline from
BENGALURU)
By Eric Onstad
LONDON, May 4 (Reuters) - Gold prices dipped on Friday as
the dollar strengthened ahead of key U.S. jobs data that is
expected to underline a strong economy and support the case for
more interest rate increases.
Spot gold was down 0.2 percent at $1,308.81 an ounce
at 0930 GMT, heading for a third consecutive weekly decline,
while U.S. gold futures for June delivery fell by 0.2
percent to $1,309.70.
U.S. employment data due at 1230 GMT is likely to show that
jobs growth accelerated in April after a weather-related
slowdown the previous month. Unemployment, meanwhile, is
expected to be near a 17-1/2 year low of 4 percent.
Analysts said a strong outcome is already priced in by the
market, so gold was unlikely to move much if non-farm payrolls
increase by 192,000, in line with the consensus in a Reuters
poll of economists.
"But if there is a surprise, and it comes in quite positive
and the dollar appreciates, gold is likely to come under
pressure again and we don't rule out a test of the $1,300 mark,"
said Commerzbank analyst Daniel Briesemann.
"Even if gold dips below $1,300, the past has shown that
there is buying interest below that level, so we don't expect
gold to drop significantly for the moment."
Expectations of a robust U.S. jobs report supported the
dollar index , which weighed on gold. A stronger dollar
makes commodities priced in the greenback more expensive for
buyers using other currencies.
The dollar was on track for a weekly gain of about 1
percent.
Spot gold is biased to bounce to resistance at $1,326 an
ounce, as suggested by a projection analysis and a falling
channel, said Reuters technical analyst Wang Tao.
Holdings in the SPDR Gold Trust , the world's largest
gold-backed exchange-traded fund, fell by 0.13 percent to 865.60
tonnes on Thursday.
Among other precious metals, spot silver fell 0.1
percent to $16.39 an ounce.
Among platinum-group metals, mainly used for catalysts that
clean pollution from car exhaust, platinum shed 0.2
percent to $898 an ounce and was on track for a third weekly
fall. Palladium added 0.2 percent to $963.90.
British new car registrations ended a year-long run of
declines to rise by an annual 10.4 percent in April, though
demand for diesel cars dropped by 25 percent in Europe's
second-largest autos market.
Palladium is mostly used in catalysts for petrol vehicles
while platinum is largely used in diesel cars.
(Additional reporting by Eileen Soreng in Bengaluru
Editing by David Goodman)