* Italian coalition deal takes pressure off stocks, euro
* Platinum on track for 1.5-percent weekly gain
* GRAPHIC - 2018 asset returns: (Updates prices)By Jan HarveyLONDON, June 1 (Reuters) - Gold steadied below $1,300 anounce on Friday ahead of U.S. payrolls data due later that willbe closely watched for clues on the outlook for U.S. interestrate policy.The U.S. non-farm payrolls report for May is expected toshow the world's largest economy added 188,000 jobs last month,keeping the Federal Reserve on track to raise interest ratesthis month. Gold is highly sensitive to rising rates, which increase theopportunity cost of holding non-yielding bullion, while boostingthe dollar, in which it is priced.
Spot gold stood at $1,297.14 an ounce at 1120 GMT,little changed from late on Thursday, while U.S. gold futures for August delivery were down 0.2 percent at $1,301.90an ounce.
"Investors will be closely watching the upcoming U.S. NFPdata," Think Markets chief market analyst Naeem Aslam said."Any strength in the average hourly earning would make thedollar stronger. Robust U.S. NFP numbers would push the goldprice lower...The support of $1,280 would be the target point,"he said.
Gold took little direction from currency markets on Friday,as a coalition deal put an apparent end to a political crisis inItaly, allowing the euro to stabilise against the dollar. World stocks also rose and bond yields fell as investorswelcomed the Italian deal, although appetite for risk remainedfragile as concerns simmered over the prospect of a global tradewar. A stand-off between the United States and its tradingpartners deepened after the United States on Thursday went aheadwith tariffs on aluminium and steel imports from Canada, Mexicoand the European Union, ending a two-month exemption. While a worsening global trade situation could benefit goldif it curbs appetite for assets seen as higher risk, the metalis still suffering from expectations that the Fed will pressahead with rate hikes this year.
"Bullion is likely to trade reactive to headlines and U.S.dollar flows," MKS said in a note. "(It needs) to consolidateabove $1,300 to instil confidence in the market for a testthrough the 200-day moving average at $1,308."Holdings of the world's largest gold-backed exchange-tradedfund, SPDR Gold Shares , fell 0.52 percent to 847.03 tonneson Thursday. Among other precious metals, silver was up 0.5percent at $16.42 an ounce, while platinum was 0.3percent higher at $903.90 and ounce and palladium wasflat at $985.45 an ounce. (Additional reporting by Karen Rodrigues in BengaluruEditing by Mark Heinrich)
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