Gold trims gains on U.S. jobs data

Gold futures on the COMEX Division of the New York Mercantile Exchange pared gains and ended moderately lower on Friday, as the encouraging U.S. jobs report lifted global equity and commodity markets, and eroded gold's appeal as safe-haven. Silver closed at its highest level since March 2008, and platinum also advanced.

The most active gold contract for December delivery lost 2.3 U. S. dollars, or 0.2 percent, to finish at 1,251.1 dollars per ounce.

The U.S. Labor Department announced earlier Friday that the country shed 54,000 nonfarm jobs in August, which is only half of what economists had estimated, while the unemployment rate climbed to 9.6 percent from 9.5 percent in July, which is in line with expectation.

Gold dropped immediately after the report was released, as the stronger-than-expected increase of private sector payrolls lifted hopes about the prospects for the U.S. economic recovery.

Meanwhile, U.S. equity snapped a three-week losing streak and ended sharply higher on Friday, as a slew of stronger-than- expected economic reports fueled market optimism. The strong rally in stock markets also helped encourage investors to transfer their money from gold markets to risky assets.

Gold received some help and clawed back after a report showed that the U.S. service sector expanded for the eighth consecutive month in August at a sharply lower pace. Gold rallied 1 percent this week, and silver soared 4.8 percent on speculations that the improving global economic recovery would lift demand for silver as an industrial metal.

December silver rose 27.7 cents, or 1.4 percent, to 19.949 dollars per ounce. October platinum climbed 9.6 dollars, or 0.6 percent, to 1,561.1 dollars per ounce.

Source:Xinhua