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Extended industrial demand slowdown could hurt silver-Heraeus *
Global shares muted, oil gains on Saudi pledge to cutoutput *
Platinum, palladium eke out gains (Updates prices) By Seher Dareen June 5 (Reuters) - Gold slipped on Monday as the dollarfirmed after strong U.S. payrolls data last week, offsettingsome of the support for zero-yield bullion from bets that theFederal Reserve may pause rate hikes in June.
Spot gold fell 0.4% to $1,940.39 per ounce by1247 GMT, close to its lowest level since May 30 and trading ina $12 range.
U.S. gold futures fell 0.8% to $1,954.60.
"Gold bulls' shoulders slumped after yet another red-hotheadline non-farm payroll print fuelled a rebound in thedollar," said Han Tan, chief market analyst at Exinity. Gold dropped more than 1% on Friday after data showed theU.S. economy added 339,000 jobs last month, above estimates of190,000.
Meanwhile the dollar index was up 0.3% on Monday,making greenback-priced bullion less affordable for overseasbuyers. Gold also weakened on safe-haven demand reducing after U.S.President Joe Biden pushed the debt ceiling deal through boththe House and Senate, SP Angel analysts said in a note.
But providing a floor for bullion prices, the chances of theFed standing pat on interest rates at its June 13-14 meetingwere pegged at 76%, according to the CME FedWatch Tool. Non interest-bearing bullion tends to become less attractivein a high-interest rate environment.
"To see higher gold prices, we need to see the Fed gettingmore dovish, which likely requires weaker economic data," saidUBS analyst Giovanni Staunovo. Global shares held firm as investors bet on a rate-hikepause and after Saudi Arabia pledged the biggest reduction inits oil output in years. Silver dipped 1.2% to $23.32, platinum rose 0.7% to $1,010.78 while palladium fell 0.6% to$1,411.79.
Amid prospects for an economic slowdown in Europe and theU.S., an extended period of softening industrial demand couldremove some support for silver prices from factors such asgrowth in solar cell production, Heraeus said in a note.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Spot gold prices ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Seher Dareen in Bengaluru; Editing by Jan Harveyand Louise Heavens)
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