* Gold falls to 1-wk low, biggest pct loss in 6 wks
* Silver pulls further away from 2-1/2-year peaks
* All precious metals ease on improved US jobs, trade data
(Recasts, updates prices, market activity)
By Carole Vaporean and Amanda Cooper
NEW YORK/LONDON, Sept 9 (Reuters) - Gold prices fell on
Thursday, settling near one-week lows on the biggest daily
percentage loss in six weeks, as some investors unwound
safe-haven trades and automatic sell orders were set off when
prices slid past $1,250.0 an ounce.
Gold fell early on improved U.S. labor market and
international trade data, then losses accelerated in later
trade.
Spot gold <XAU=> was bid at $1,243.70 an ounce by 3:56 p.m.
EDT (1956 GMT), down about 1 percent from $1,254.50 late in New
York on Wednesday -- the biggest daily percentage loss in six
weeks.
The slide began after the market looked ready to climb near
June's record high at $1,264.90 an ounce.
U.S. December gold futures <GCZ0> slipped $6.60 to close at
$1,250.90 an ounce. It tumbled to a low of $1,243.50, a level
last seen on Sept. 3.
Silver <XAG=> fell to $19.73 an ounce, against $19.88 on
Wednesday, when it hit its highest level since early 2008 as
investors sought a cheaper alternative to gold.
Gold tumbled to a one-week low after oil had firmed to a
three-week high, U.S. equities were up, and the euro edged down
against the dollar, all factors that tend to undermine demand
for gold as a safe-haven asset.
By the close, oil had nudged lower, which helped gold cut
its losses.
U.S. weekly filings for unemployment benefits fell to their
lowest level in two months, and the U.S. international trade
gap narrowed by more than forecast. The news boosted stocks
[], but nudged gold lower. STORY: [] TABLE:
[]
The July U.S. trade deficit shrank 14 percent, as imports
retreated and exports shot to their highest since August 2008,
lifting hopes for third-quarter economic growth. STORY:
[] TABLE: []
"Gold was faltering on firmer equity markets and being
viewed as less needed from a safe-haven perspective after the
slightly stronger than expected U.S. data today," said David
Meger, Vision Financial Markets director of metals trading in
Chicago.
Once selling took gold below the $1,250 an ounce level
stop-loss sell orders triggered selling to the day's low.
"We are still in a situation where confidence ebbs and
flows pretty rapidly from day to day, and sometimes from hour
to hour, and morning to afternoon as the data comes in and
changes people's opinions," said Credit Suisse analyst Tom
Kendall.
Gold has risen 15 percent in 2010 as economic uncertainty
spurred investment in perceived safe-haven assets. Analysts
said investors remain uneasy about the global economy, so gold
looks unlikely to completely shed its safe-haven appeal any
time soon.
Gold "got a bit of a lift from concern over sovereign debt
and European banks earlier in the week, but that has faded and
it's tough ... to find a near-term catalyst to keep propelling
the market higher and probably one of the reasons that we
haven't hit new highs," said James Steel, an analyst for HSBC
in New York.
GROWTH RISK
In fundamental news for gold, the South African statistics
office said gold output fell 3.4 percent in volume terms, while
total mineral production fell 1.0 percent in July.
[]
Gold output has been dwindling in South Africa and is
expected to drop to the world's fifth-largest producer this
year from fourth in 2009, according to Reuters data.
Among platinum group metals, traders kept an eye on South
African miner Northam Platinum, where union members are
currently on strike and may continue for months.
Platinum <XPT=> was last quoted at $1,546.0 an ounce, down
from $1,554.00 the day before. Palladium <XPD=> fell to $519.0
compared with $522.00 on Wednesday.
Prices at 2:20 p.m. EDT (1820 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US gold <GCZ0> 1250.90 -6.60 -0.5% 14.1%
US silver <SIZ0> 19.814 -0.164 0.0% 17.6%
US platinum <PLV0> 1553.30 -8.90 -0.6% 5.6%
US palladium <PAZ0> 520.60 -4.90 -0.9% 27.3%
Gold <XAU=> 1246.75 -7.50 -0.6% 13.7%
Silver <XAG=> 19.81 -0.07 -0.4% 17.6%
Platinum <XPT=> 1551.50 -2.50 -0.2% 5.9%
Palladium <XPD=> 520.50 -1.50 -0.3% 28.4%
Gold Fix <XAUFIX=> 1255.00 1.50 0.1% 13.7%
Silver Fix <XAGFIX=> 19.97 -5.00 -0.2% 17.5%
Platinum Fix <XPTFIX=> 1552.00 1.00 0.1% 5.9%
Palladium Fix <XPDFIX=> 523.00 1.00 0.2% 30.1%
(Additional reporting by Pratima Desai; Editing by David
Gregorio)
