US gold futures down

US gold futures finished lower on Friday, ending a streak of solid gains in the last three sessions as the dollar rose and crude oil weakened. Most-active gold for April delivery on the COMEX division of the New York Mercantile Exchange settled down $3.50 at $652.00 an ounce, after bottoming at $650.00. It hit a session high of $659.80.
Gold futures rose early after encouraging US job data eased worries over economic weakness and some analysts speculated inflationary concerns may have lured in buying. George Gero, vice president at RBC Capital Markets Global Futures, said that sell-stops pushed the April contract lower after an early rally and that institutional interest had improved in gold.
Gero said position squaring by investors ahead of the weekend weighed on the market. The April contract has gained nearly $20 from its six-week low of $634.50 on Tuesday.
Trading was moderate with volume estimated at 25,000 contracts, and options turnover at 18,000. Turnover in the Chicago Board of Trade's electronically traded 100-oz gold contract was 38,150 contracts as of 2:21 pm EST (1921 GMT). (http://www.cbot.com/cbot/pub/page/). The US economy added 97,000 jobs in February, the smallest gain in two years, but job growth in prior months was revised higher and the unemployment rate dropped.
Other reports showed the US trade deficit narrowed a bit in January as exports hit a record high, while wholesale inventories grew, also suggesting economic growth in the first quarter might prove stronger than many economists had thought.
Bruce Dunn at Auramet Trading said that a combination of the nonfarm payroll data, lower crude oil prices and a strengthened dollar weighed on gold prices. US crude futures finished down more than 2 percent at just above $60 a barrel in afternoon trading, as easing US supply concerns spurred a bout of profit taking.
The dollar strengthened against the yen on Friday after a report showing US jobs growth gave investors courage to add to riskier trades financed by borrowing in low-yielding currencies.
Gold usually moves in the opposite direction to the dollar, and bullion is used by investors as a hedge against oil-led inflation. Spot gold was quoted at $649.90/0.65, compared with $650.90/1.90 late Thursday. London's afternoon gold fix was higher at $652.25.
In other precious metals, COMEX May silver closed down 15 cents, or 1.1 percent, at $12.970 an ounce, after bottoming at $12.795. It peaked at $13.200. Spot silver was quoted at $12.92/2.97, compared with $12.93/2.98 late Thursday. Silver was fixed in London at $13.070.
NYMEX April platinum ended down $10.80 at $1,203.70 an ounce. Spot platinum was quoted at $1,195.00/00.00. June palladium rose $3.35, or 1 percent, to settle at $356.40 an ounce. Spot palladium fetched $350.00/53.00.