* Bullion slides on profit taking, dollar gains
* U.S. jobs data beats forecasts, aids dollar
(Recasts, updates prices, adds detail/comment)
By Michael Taylor and Maytaal Angel
LONDON, Nov 5 (Reuters) - Gold hit a fresh record around
$1,394 an ounce on Friday before turning lower as the dollar
retraced some of the losses made in the wake of this week's move
by the U.S. Federal Reserve to pump more money into the economy.
Spot gold <XAU=> traded at $1,381.75 an ounce at 1320 GMT,
against $1,392.25 late in New York on Thursday, having earlier
hti a record of $1,394.06. U.S. gold futures for December
delivery <GCZ0> traded down $1.20 at $1,381.90.
The dollar rose versus the euro on Friday on concerns over
euro zone debt and after data showed U.S. employment increased
more than expected last month as private companies hired workers
at the fastest pace since April. [] []
A strong dollar makes dollar-priced gold more expensive for
European investors and dents gold's appeal as an alternative
currency which holds in the face of inflation, when paper
currencies typically lose their worth.
"The record high was the follow through of the strong
reaction we've seen to the Fed announcement of quantitative
easing and the inflation expectations which are still at
elevated levels," said Ole Hanson, analyst at Saxo Bank.
"We ran into profit taking after that (record) and after
the non-farm payrolls data which surprised to the upside for a
change. Whether we see a correction from here will have to be
decided by the dollar."
Gold had its biggest one-day rise in about six months on
Thursday after the Fed's pledge to pump over half a trillion
dollars into the economy battered the dollar.
The Federal Reserve committed $600 billion to buy government
bonds late on Wednesday in a fresh effort to support a
struggling U.S. economy, undermining the U.S. currency and
stoking fears over longer-term inflation. []
"The key implication of the QE measures is that major
currencies -- particularly the U.S. dollar -- are likely to lose
value relative to 'alternative' currencies such as gold," said
David Thurtell, analyst at Citi.
"Gold's traditional disadvantage, no yield, is largely
reduced in a zero interest rate world," he added. "But its major
advantage, limited supply, is massively enhanced, as central
banks expand the paper money supply with further QE."
Policymakers from the world's new economic powerhouses in
Asia criticised the Fed's move to inject billions of dollars
into the U.S. economy, saying it made any substantive deal on
cutting global economic imbalances less likely at next week's
Group of 20 meeting in Seoul. []
"Gold had been playing follow the leader rather than leading
the way of late ... and the dollar has regained some poise
overnight," said Simon Weeks, head of precious metals at the
Bank of Nova Scotia. "If people are putting risk back on the
book, then gold should be underperforming.
Among other metals, silver <XAG=> hit a 30-year high to
catch up with gold prices, while palladium <XPD=> rose to a
fresh nine-year high.
Silver <XAG=> hit $26.62 an ounce, but was last traded at
$26.07 against $26.33.
Palladium <XPD=> peaked at $686 an ounce and was later at
$674.22 an ounce against $680.50 late on Thursday. Platinum
<XPT=> was traded at $1,745.74 an ounce against $1,781.
(Reporting by Michael Taylor; editing by Anthony Barker)
