PRECIOUS-Gold falls as investors gravitate toward risk as economies reopen

(Updates prices)
* U.S. stocks head for first weekly rise in three weeks
* U.S. nonfarm payrolls dive 20.5 million in April
* Gold up 0.3% so far for the week
* For an interactive graphic tracking the global spread,
open https://tmsnrt.rs/3aIRuz7
in an external browser

By Eileen Soreng
May 8 (Reuters) - Gold on Friday eased from its highest in
nearly two weeks, as investors grew hopeful about economies
reopening after COVID-19 lockdowns, but a continued wave of
central bank stimulus kept bullion on course for a weekly gain.
Spot gold XAU= fell 0.8% to $1,704.53 per ounce by 2:31
p.m. EDT (1831 GMT) after hitting $1,722.56, its highest since
April 27. Prices were up 0.3% for the week.
U.S. gold futures GCcv1 settled 0.7% lower at $1,713.90.
Also limiting gold's appeal was slightly
better-than-expected data from the United States that showed job
losses in April hit 20.5 million, fewer than the expected 22
million. The unemployment rate was 14.7%, lower than the market
forecast of 16%. Still, overall the U.S. economy suffered its steepest
monthly plunge in payrolls since the Great Depression, the
starkest sign yet of how the novel coronavirus pandemic is
battering the world's biggest economy.
"Even though the jobs number was clearly dramatic - the
worst number we ever had as a nation - on the back of that we
see slight bit of optimism moving forward with the economy
reopening slowly here in the U.S.," said David Meger, director
of metals trading at High Ridge Futures.
The April nonfarm payrolls data lifted U.S. stock markets,
adding to optimism from an easing in tensions between Washington
and Beijing. .N
Wall Street's indexes are on course for their first weekly
increase in three, as investors pinned their hopes on supply
chains coming back on track and a revival in consumer spending
after several U.S. states reopened economies.
However, "the primary drivers for strength in gold -
interest rates at zero, massive spending and deep concerns about
a second wave of infection - remain powerful so gold's prospects
remain strong over the medium term," said Tai Wong, head of base
and precious metals derivatives trading at BMO.
The latest batch of week U.S. economic data fueled
expectations of more stimulus from the Federal Reserve, with
markets pricing in a negative interest rate environment.
Lower U.S. interest rates pressure the dollar and bond
yields, increasing the appeal of non-yielding bullion.
Sino-U.S. friction appeared to ease after Beijing said trade
negotiators from both countries had agreed to improve the
atmosphere for implementing a Phase 1 deal, days after U.S.
President Donald Trump threatened new tariffs. Palladium XPD= rose 0.7% to $1,869.25 per ounce and
platinum XPT= gained 0.5% to $767.48.
Silver XAG= dipped 0.3% to $15.45.