Gold dipped on Friday, set for its biggest weekly decline since May after disappointing US jobs data failed to revive safe-haven demand. Bullion declined for a fifth day, its longest losing streak in seven months, although it closed up from a six-week low after data showed US employers hired fewer workers than expected in December, and a surprise fall in the unemployment rate was blamed on people giving up the search for work.
"Money is moving out of bonds and gold into the broader equity market as investors are willing to take on more risks thinking that economic conditions have improved," said Brian Hicks, co-manager of Global Resources Fund of the $2.9 billion fund manager US Global Investors.
Spot gold fell 0.3 percent to $1,366.55 on ounce at 1:36 pm EST (1836 GMT), having earlier touched a low of $1,352.30 an ounce, its weakest since November 26. On charts, gold has breached below two important support levels, namely its 50-day average at $1,382 an ounce and its December lows at the $1,360s, said Adam Sarhan, chief executive of New York-based Sarhan Capital.
US gold futures for February delivery dropped $2 an ounce to $1,369.70. Strong physical demand could also lift prices after recent decline. The head of the Bombay Bullion Association told Reuters that gold imports to India, the world's largest consumer, are likely to jump 64 percent to 500-550 tonnes in 2011.
Gold-backed exchange-traded funds continued to see outflows, with holdings of the largest, New York's SPDR Gold Trust, falling to a seven-month low on Thursday. Silver dropped 1 percent to $28.76 an ounce. Platinum slipped 0.1 percent at $1,727.24 an ounce, while palladium eased 0.6 percent at $753.97.
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