Oct 4 (Reuters) - Gold prices rose for a fourth straight
session on Friday as weak U.S. service sector survey deepened
concerns over economic growth and bolstered bets of further rate
cuts by the Federal Reserve, with markets awaiting nonfarm
payrolls data.
FUNDAMENTALS
* Spot gold XAU= was up 0.2% at $1,508.12 per ounce, as of
0132 GMT. It climbed to $1,518.50, its highest since Sept. 25 in
the previous session.
* U.S. gold futures GCv1 were flat at $1,513.9 an ounce.
* The dollar stepped back after a soft U.S. service sector
survey stoked worries that pressure from U.S. trade disputes
with China and other countries could spill over into the broader
U.S. economy and tip it into a recession. USD/
* Asian stocks edged higher on Friday, thanks to gains on
Wall Street, but the mood was cautious before a key U.S. job
report that could help determine whether the Federal Reserve
cuts interest rates further. MKTS/GLOB
* U.S. nonfarm employment report is due at 1230 GMT.
According to a Reuters survey of economists, nonfarm payrolls
probably increased by 145,000 jobs last month after rising by
130,000 in August.
* U.S. services sector activity slowed to a three-year low
in September amid rising concerns about tariffs, a survey showed
on Thursday, suggesting that trade tensions were spilling over
to the broader economy. * Two Fed policymakers on Thursday signalled they are open
to delivering another rate cut after a report showed the growth
in the vast U.S. services sector is slowing, but the Fed's No.
2, speaking late in the day, gave little away on his own
thinking. * Lower interest rates decrease the opportunity cost of
holding non-yielding bullion and weigh on the dollar.
* New 25% U.S. tariffs on Italian cheese, French wine,
Scotch whisky, British biscuits, Spanish olives and thousands of
other European food products will lead to higher prices ahead of
the holiday season and cost American jobs, trade groups said on
Thursday. * Euro zone business growth stalled in September as an
ongoing contraction in manufacturing activity is increasingly
affecting the services industry, according to a survey which
showed little chance of an improvement this month. * The European Union and Ireland said on Thursday that Prime
Minister Boris Johnson's Brexit proposals were unlikely to yield
a deal, with Dublin bluntly warning that Britain was heading
towards a no-deal exit unless it made more concessions.
* Gold is considered a safe store of value during economic
and political uncertainty.
* Palladium is likely to rise still higher after growing
demand from automakers and a gaping supply shortfall pushed
prices to record levels above $1,700 an ounce this week,
analysts said.