US gold futures turned lower in choppy and directionless trade amid thin volume on Friday, driven by pre-weekend position squaring and selling after data showed US employers slashed more than half a million jobs in January. Gold for April delivery dropped $3.10 to $911.10 an ounce to 10:45 am EST (1545 GMT) on the COMEX York Mercantile Exchange. Ranged $905.40 to $921.90.
Gold trading largely on hold amid low volume ahead of US Treasury's plan to strengthen banks and the financial system on Monday, said George Gero, vice president of RBC Capital Markets Global Futures. Volume and open interest signal serious investment demand which has been overtaking hedge selling from gold producers, added Gero. Early session gains erased after report showed US employers slashed 598,000 jobs in January, the deepest cut in payrolls in 34 years and the jobless rate shot up to 7.6 percent.
Sharp investment inflows continued to provide underlying support. The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its bullion holdings nearly 8 tonnes to record 867.19 tonnes as of February 5. Gold futures contracts outperformed crude oil in percentage terms. Gold/oil ratio turned higher to 23.2, compared with 22.5 in the previous session. Spot gold was at $907.90 an ounce, down 0.6 percent from the last trade on Thursday.
March silver rose 18.5 cents, or 1.4 percent, to $12.935 an ounce based on strength of industrial metals such as copper, outperforming gold. Ranged $12.740 to $13.085. Spot silver quoted at $12.93 an ounce, up 0.7 percent from its previous close.
NYMEX April platinum gained $15.50, or 1.6 percent, to $997.50 an ounce extending a recent rally helped by a stronger stock market and hopes that auto demand will recover soon. Spot platinum quoted at $991.00 an ounce, up 1.9 percent from its last finish.NYMEX March palladium jumped $9.30, or 4.6 percent, to $211.50 an ounce on pent-up demand in tandem with platinum's gains. Spot palladium was at $208.00 an ounce, up 3.7 percent from its previous close on Thursday.