US gold futures remained lower throughout Friday's session after better-than-expected US payrolls data, but minimised losses by the end as the ISM service sector data came in weaker than forecast and the dollar fell, traders said. COMEX December gold futures lost $2.30 to settle at $1,251.10 an ounce on the COMEX division of the NYMEX. Range spanned $1,239.20, a three-day low, to $1,255.60, a lower high.
Gold investors also trimmed losses ahead of the long US holiday weekend, with some players not wanting to leave large open positions for three days, said traders. In early business, gold slid over 1 percent following the US employment report, which came in much better than expected, said traders. US non-farm payrolls fell by 54,000 in August, but gold traders had set up for economists' average forecast for a 100,000 decline in August payrolls. And private employment, considered a better gauge of labour market health, increased more than had been forecast.
Later, gold pulled up from its three-day lows when separate data showed the US non-manufacturing sector grew more slowly than expected in August and the sector's employment shrank. The ISM report's employment component fell to 48.2 from 50.9, and new orders dipped sharply to 52.4 from 56.7, suggesting a slowdown in the sector. Dollar declines also helped gold trim early losses, said traders.
US dollar was down against most foreign currencies after the surprisingly strong non-farm payroll report eased worries about the economy and boosted the appetite for riskier assets. Though New York markets will be shut on Monday, gold should be able to overcome Friday's declines said analysts.
"Gold is in a longer-term bull market and it's quite normal for a recovery to come off the dip. The jobs number wasn't as bad as people thought, but it still wasn't a good number," said Sterling Smith, analyst for Country Hedging Inc in St. Paul, Minnesota.
Smith sees gold reaching new all-time highs by the end of September. Next week, a light economic calendar and a week with two holidays might keep trade light and ranges narrow, said traders. COMEX estimated final gold volume at a healthy 105,918 lots.
Gold bullion slipped to $1,246.70 an ounce by 3:36 pm EDT (1936 GMT) from $1,250.74 an ounce in late Thursday dealings. COMEX December silver jumped 27.70 cents to close at $19.949 an ounce, rising with industrial metals on better-than-forecast jobs data. Range spanned $19.505 to $19.985 an ounce. COMEX estimated final volume at 30,391 lots. Spot silver was sharply higher at $19.82 in late New York trade, down from $19.58 an ounce at the previous session end.
NYMEX October platinum ended $9.60 higher at $1,561.10 an ounce. Platinum prices rose with other industrial metals, said trades. Spot platinum ends higher at $1,551 after $1,543.10 an ounce previously. NYMEX December palladium closes with $6.20 gains at $531.45 an ounce, also lifted by industrial metal gains. Spot palladium increased to $527 from $520.93 an ounce on Thursday.
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