Gold prices rose on Friday on a weaker U.S. dollar and a pause in the recent rallies in global equity markets, amid signs of lingering economic damage from the coronavirus crisis that had investors moving towards the safe-haven metal.

 

FUNDAMENTALS

* Spot gold was up 0.2% at $1,714.78 per ounce, as of 1256 GMT. U.S. gold futures were down 0.3% at $1,721.90.

* However, the bullion was set for a third consecutive weekly drop.

* The dollar index has fallen over 1.5% this week, making gold cheaper for holders of other currencies.

* The rally in Asian equities was set to pause, even as the week's global equity rally lost some steam on Thursday as traders took gains.

* Showing lingering economic damage, U.S. jobless claims fell below 2 million for the first time since mid-March, but remains very high; and U.S. trade deficit surged in April with exports at a 10-year low, data showed on Thursday.

* Investors now wait for the U.S. nonfarm payrolls data due later in the day, and is likely to show payrolls falling by 8 million after a record 20.537 million plunge in April, according to a Reuters survey of economists.

* Meanwhile, the European Central Bank approved a larger-than-expected expansion of its stimulus package on Thursday.

* Japan's household spending suffered the biggest annual drop on record in April, although the fall was not as large as analysts had forecast.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings, dipped 0.1% to 1,132.21 tonnes on Thursday.

* Palladium rose 0.7% to $1,946.55 per ounce and platinum climbed 0.4% to $840.39, while silver was trading flat at $17.72.

 

(Reporting by Harshith Aranya in Bengaluru, Editing by Sherry Jacob-Phillips) ((harshith.aranya@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 80 6182 2599; Reuters Messaging: harshith.aranya.thomsonreuters.com@reuters.net))