PRECIOUS-Gold eases as China factory data whets risk appetite

* U.S. October non-farm payrolls data due at 1230 GMT
* Gold set for weekly gain
* Palladium eyes fourth consecutive weekly rise

(Adds comment, details, updates prices)
By Karthika Suresh Namboothiri
Nov 1 (Reuters) - Gold prices slipped on Friday as strong
data from China buoyed risk appetite, while investors awaited
employment data from the United States to determine the impact
of a long-drawn trade war on its economy.
Spot gold XAU= dipped 0.2% to $1,510.25 per ounce as of
1103 GMT. Prices were set to record a weekly gain of 0.4%.
U.S. gold futures GCcv1 fell 0.1% to $1,512.60 per ounce.
"The data out of China is somewhat easing concerns over the
global landscape and ultimately reducing appetite for gold,"
said FXTM analyst Lukman Otunuga, adding trade uncertainties and
the interest rate cut by the U.S. Federal Reserve will, however,
continue supporting gold in the medium to longer term.
European shares rose, on track for their best day in more
than a week, as a surprise bounce in China's manufacturing
activity calmed investors worried about the progress in
U.S.-China trade talks due to conflicting tones. .EU
China's factory activity unexpectedly expanded at the
fastest pace in well over two years in October as new export
orders rose and plants ramped up production, a private business
survey showed. Also lifting sentiment was a statement by U.S. President
Donald Trump saying the two sides would soon announce a new
venue for the signing of a "Phase One" trade deal, after
protests in Chile had seen a planned summit there this month
cancelled. "While still above $1,500, it's hard to build a case for a
sustained bullish recovery currently as the metal remains
sensitive to headlines," MKS PAMP said in a note.
"Resistance levels sit toward $1,520-$1,525, with extension
toward hard resistance at $1,535."
Markets now await U.S. non-farm payrolls. The U.S. economy
is forecast to have created 89,000 new jobs in October, slower
than 136,000 new jobs created in the previous month, according
to a Reuters poll.
Disappointing jobs data today could renew speculation over
the Fed moving forward with a fourth rate cut by the end of
2019, FXTM's Otunuga said.
The Fed cut interest rates for a third time this year, but
signalled there would be no further reductions unless the
economy takes a turn for the worse. Other precious metals remained muted, while silver XAG=
fell 0.3% to $18.07 and platinum XPT= was flat at $931.94.
Palladium XPD= edged 0.3% lower to $1,789.60. The metal
was set to mark a four-week gaining streak, having notched up a
record high of $1,824.50 an ounce on Wednesday.