Gold futures fell toward $950 an ounce on Friday, losing 2 percent as a better-than-expected US jobs report sparked a dollar rally and boosted hopes for an economic recovery, denting gold's appeal as a safe haven. August settled down $19.70, or 2 percent, at $962.60 an ounce on the COMEX division of the New York Mercantile Exchange.
GOLD: Ranged from $953.80 to $985, which marked the weakest price since May 28. Gold tumbled following news that US employers cut 345,000 jobs last month, the fewest since September, a sign that the economy's severe weakness was diminishing.
The good employment figure lessened the need for flight-to-quality demand in gold, and a rising interest rate environment was negative to non-interest bearing gold - Bill O'Neill, managing partner at LOGIC Advisors. Sell-stops and pre-weekend selling in gold futures were triggered after the US nonfarm payroll report, which was not inflationary and failed to spur bullion buying - George Gero, vice president of RBC Capital Market Global Futures.
Bullion was pressured heavily as the dollar rallied, on track for its largest weekly gain in nearly two months against a basket of major currencies, after the bullish jobs data. The dynamics of a bull market is still in place because of longer-term currency debasing amid liquidity addition and potential inflation - O'Neill.
COMEX gold open interest rises above the 400,000 level, up 5,776 at 401,699 lots as of June 4, indicating rising investment interest in gold - traders. Gold could weaken further, as the metal has corrected sharply after it approached the $1,000 level each time in the past two years - analysts. COMEX estimated final volume at a heavy 146,101 lots. Gold-oil ratio at 13.95, lower than the 14.14 of the previous session. Spot gold traded at $960 at 2:07 pm EDT (1807 GMT), down 2 percent from its late Thursday quote in New York.
SILVER: July ended down 50.7 cents, or 3.2 percent, at $15.388 an ounce, tracking gold's sharp decline. Ranged from $15.160 to $15.980. COMEX estimated final volume at busy 40,924 lots. Spot silver was at $15.32 an ounce, down 3.3 percent from its previous finish.
PLATINUM: July finished down $7.10 at $1,286.20 an ounce due to a dollar bounce after reaching above $1,300 in the previous session. Platinum prices affected by an uncertain auto industry, as the global car industry accounts for 60 percent of total platinum demand for use in automobile catalytic converters. Spot platinum at $1,271.50 an ounce, down 1.5 percent from its late Thursday quote.
PALLADIUM: September closed up $4.40, or 1.7 percent, at $259.80 an ounce on thin buying. Spot palladium was at $257 an ounce, up 1.8 percent from its previous finish.
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