PRECIOUS-Gold slips on positive U.S. jobs, China factory data

* U.S. job growth slows less than expected in October
* China's factory activity expands at fastest pace in over 2
years
* Gold set for a weekly gain
* Palladium eyes 4th weekly rise, platinum hits over 1-month
high

(Updates prices)
By Eileen Soreng
Nov 1 (Reuters) - Gold prices eased on Friday as
better-than-expected U.S. jobs numbers and strong factory data
from China bolstered sentiment for riskier assets.
Spot gold XAU= dipped 0.3% to $1,508.61 per ounce as of
02:32 p.m. EDT (1832 GMT). Prices were set for a weekly gain.
U.S. gold futures GCv1 settled down 0.2% at $1,511.40.
"For now, gold is under pressure with the positive economic
news. ... It will be struggling for some direction," said
Mitsubishi analyst Jonathan Butler.
"From here, it's difficult to see what the major upside
factors would be for gold other than some geopolitical events,
with the U.S. Federal Reserve pretty set on keeping rates on
hold for now."
U.S. job growth slowed less than expected in October, while
hiring in the prior two months was stronger than previously
estimated, offering assurance that consumers would continue to
prop up the slowing economy for a while. 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. Lower interest rates generally reduce the opportunity cost
of holding non-yielding gold and weigh on the dollar.
"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."
Stock markets took comfort from the October U.S. jobs data
and numbers showing China's factory activity expanded at its
fastest pace in more than two years. .N MKTS/GLOB
Also lifting sentiment for riskier assets was a statement by
U.S. President Donald Trump saying Washington and Beijing would
soon announce a new venue for the signing of a "Phase One" trade
deal, after protests in Chile resulted in the cancellation of a
planned summit there this month. In terms of the overall outlook for gold, however, the trend
is positive with the metal likely consolidating before moving
higher, said Edward Moya, a senior market analyst at OANDA,
adding there are doubts that the trade war will get completely
wrapped up and investors are also skeptical about jumping into
the stock market rally.
"There's a strong call for portfolio diversification and
people prefer gold over Treasuries."
In other precious metals, silver XAG= was down 0.7% at
$18.01. Platinum XPT= rose 1.5% to $946.13 per ounce, after
hitting its highest level since Sept. 25, at $954.12, en route
to a weekly rise of about 2%.
Palladium XPD= was 0.5% higher at $1,803.29. The metal was
set to mark a four straight weekly gain, having notched up a
record high of $1,824.50 an ounce on Wednesday.