PRECIOUS-Gold prices steady ahead of U.S. payrolls, on track for 7th weekly gain

* Gold up nearly 0.5% so far this week
* Palladium set for 5th weekly rise
* Spot gold may retest resistance at $1,435/oz-technicals

(Updates prices)
By Brijesh Patel
July 5 (Reuters) - Gold prices were steady on Friday,
heading for a seventh consecutive weekly rise, as investors
waited for U.S. employment data that could influence
expectations about aggressive policy easing by the Federal
Reserve.
Spot gold XAU= was little changed at $1,415.82 per ounce
as of 0725 GMT, adding nearly 0.5% so far this week.
U.S. gold futures GCv1 were down 0.2% at $1,417.60 an
ounce.
"We have a key event tonight for the global economy that is
U.S. non-farm payrolls numbers. If they come in weaker than
expected, we will see confirmation of one of the key supports
for gold that is lower interest rate environment," said Michael
McCarthy, chief market strategist, CMC Markets.
All eyes are on the U.S. non-farm payrolls report due later
in the day, which economists expect to have risen by 160,000 in
June, compared with a rise of 75,000 in May. The Fed holds its two-day policy meeting on July 30-31 and
futures 0#FF: are fully pricing in a 25 basis point cut.
The Fed is not alone in embarking on easier monetary policy.
Australia's central bank has cut its cash rate by 50 basis
points since June while leaving the door ajar for a third move
this year. "Gold should do well coming out of non-farm payrolls data as
one positive payroll print should not change the sense of
urgency central banks around the world must feel," said Stephen
Innes, managing partner at Vanguard Markets.
Bullion has gained more than 12%, or $150, since touching
its 2019 low of $1,265.85 in early May, driven by dovish outlook
from major central banks and an escalation in tensions between
the United States and Iran.
Lower interest rates decrease the opportunity cost of
holding non-yielding bullion and weigh on the dollar, making
gold cheaper for investors holding other currencies.
Meanwhile, the dollar index .DXY rose on Friday against a
basket of six major currencies, having spent the previous day in
a tight range as the U.S. financial markets were closed for the
Independence Day holiday. USD/
On the technical side, spot gold may retest a resistance at
$1,435 per ounce, with a good chance of breaking above this
level and rising into a range of $1,443-$1,456, according to
Reuters technical analyst Wang Tao. Among other precious metals, silver XAG= fell 0.3% to
$15.23 per ounce, while platinum XPT= edged 0.1% higher to
$833.18.
Palladium XPD= rose 0.2% to $1,565.05 an ounce and was
heading for a fifth straight weekly gain.