Gold retreats on firm dollar, US payrolls data on tap

Gold was subdued on Thursday on the dollar's strength, while investors awaited more clarity on trade policy between the U.S. and its trading partners, and looked forward to the U.S. non-farm payrolls report due this week.

FUNDAMENTALS

* Spot gold fell 0.7% to $3,265.45 an ounce, as of 0022 GMT. U.S. gold futures lost 1.4% to $3,273.70.


* The dollar index, which measures the U.S. currency against a basket of others, rose 0.2%, making gold less attractive for other currency holders.

* Trump administration expects to conclude initial tariff deals with some U.S. trading partners within weeks, but negotiations with India are not "finish-line close" and no official talks with China are underway, U.S. Trade Representative Jamieson Greer said on Wednesday.

* Meanwhile, the U.S. economy contracted for the first time in three years in the first quarter, as businesses rushed to import goods ahead of expected tariffs from the Trump administration.

* The market now awaits non-farm payrolls report on Friday for more cues on the Fed's monetary policy path. The report is expected to show a slowdown in hiring but no change in the 4.2% unemployment rate.

* Non-yielding gold, considered a hedge against global uncertainty and inflation and tends to thrive in a low-interest-rate environment, soared to a record high of $3,500.05 per ounce on April 22.

* Analysts in a quarterly Reuters poll have forecast an average annual gold price above $3,000 for the first time, with global trade friction and a swing away from the U.S. dollar powering demand.

* China's stock and bond markets, foreign exchange and commodity futures markets will be closed from May 1 until May 5 for the Chinese Labour Day holiday.

* Spot silver rose 0.1% to $32.63 an ounce, platinum fell 0.1% to $965.32 and palladium firmed 0.1% to $938.85.

DATA/EVENTS (GMT) 0030 Japan JibunBK Mfg PMI Final SA Apr 0830 UK S&P GLOBAL MANUFACTURING PMI Apr 1230 US Initial Jobless Clm 26 Apr, w/e 1345 US S&P Global Mfg PMI Final Apr 1400 US ISM Manufacturing PMI Apr 1430 US EIA-Nat Gas Chg Bcf, Nat Gas-EIA Implied Flow 25 Apr.