* U.S. non-farm payrolls fall less than expected in August
* Dollar falls versus euro, equities climb after U.S. data
* Silver poised for further gains after 3-1/2 month high
(Updates prices, adds comment, background)
By Jan Harvey
LONDON, Sept 3 (Reuters) - Gold prices fell more than 1
percent on Friday to their lowest in three sessions, after data
showed U.S. non-farm payrolls fell by less than expected in
August, boosting the appeal of assets seen as higher risk.
Spot gold <XAU=> slipped to a low of $1,235.70 an ounce and
was bid at $1,240.50 an ounce at 1315 GMT, against $1,250.74
late in New York on Thursday. U.S. gold futures for December
delivery <GCZ0> fell $9.50 to $1,243.90.
U.S. employment fell for a third straight month in August,
but the decline was far less than expected and private payrolls
growth surprised on the upside, easing pressure on the Federal
Reserve to prop up growth. []
"Non-farm payrolls data has come out much better than
expected -- the consensus was for job losses of about 100,000,
it has come out at 54,000," said Societe General analyst David
Wilson. "Gold is losing a bit of momentum."
However, recent U.S. data has tended to still point towards
a relatively soft recovery, he said. "There is still an overall
sense of caution, which should still be supportive for gold."
Gold has benefited in recent weeks from concerns that weak
growth would push the Fed into further quantitative easing
measures, which could ultimately prove inflationary.
The dollar fell versus the euro <EUR=> in the wake of the
data, though it climbed versus the Japanese yen, as the numbers
boosted appetite for higher-yielding currencies. []
Stock markets extended gains in Europe to a fresh three-week
high as the report surprised on the upside, while U.S. stock
index futures also rose. [] []
German Bund futures meanwhile fell to session lows, while
U.S. Treasuries prices widened losses. [] []
Among other commodities, U.S. crude futures rose after the
report, reaching a high of $75.44 a barrel, though they later
pared gains. Base metals like copper and aluminium rose. []
[]
ETF HOLDINGS FALLS
Recent strength in gold prices notwithstanding, physical
demand for the precious metal was muted.
The world's largest gold-backed exchange-traded fund, New
York's SPDR Gold Trust <GLD.P>, reversed the inflows it reported
over the last week, with its holdings falling more than 9 tonnes
to 1,294.908 tonnes on Thursday. []
Meanwhile, Indian gold buying was muted for a second day on
Friday as traders were cautious about placing fresh orders after
prices traded near a record high, dealers said. []
Surging prices have weighed heavily on the price-sensitive
Indian market in recent years. However, market watchers have
noted some tentative signs of recovery in demand as buyers
become acclimatised to higher prices.
"Indian festival seasonal demand looks set to be healthy,"
said bullion dealer Goldcore in a note.
Among other precious metals, silver <XAG=> was bid at $19.59
an ounce against $19.58, having earlier matched the 3-1/2 month
high at $19.68 an ounce it hit on Thursday.
Technical analysts at Barclays Capital said the metal had
re-established its uptrend after breaking through its June high
at $19.47 an ounce earlier this week.
"We are bullish on silver, looking for an eventual test of
the 2008 high of $21.35," said ScotiaMocatta in a note.
Elsewhere platinum <XPT=> was at $1,553 an ounce against
$1,543.10, while palladium <XPD=> was at $523.50 versus $520.93.
(Editing by James Jukwey)
