* Gold falls below $1,190; dlr up after US jobs data
* Employers cut far smaller than expected 11,000 jobs in Nov
* Main New York gold, silver ETF holdings rise
(Recasts, adds comment, updates prices)
By Jan Harvey and Veronica Brown
LONDON, Dec 4 (Reuters) - Gold fell fast, briefly slipping
below $1,190 an ounce on Friday, as the dollar rose on a much
more robust than expected U.S. employment report that raised
sentiment on growth and dented gold as a currency hedge.
U.S. employers cut a far fewer-than-expected 11,000 jobs in
November, the smallest decline since the start of the recession
in December 2007, government data showed on Friday, strongly
suggesting the deterioration in the labor market was in its
final stages. []
Spot gold <XAU=> was last traded at $1,189.90 an ounce at
1405 GMT, against $1,207.10 late in New York on Thursday. U.S.
gold futures for February delivery <GCG0> on the COMEX division
of the New York Mercantile Exchange fell $25.40 to $1,193.80.
Spot prices struck a record high at $1,226.10 an ounce on
Thursday amid expectations for persistent weakness in the dollar
and rising inflation in 2010.
But the jobs data threw those expectations off course.
"The euro has fallen back below $1.50, which is an important
level. And by doing so, it has undercut the need for the
currency hedgers to purchase gold," said James Steel, metals
analyst at HSBC in New York.
He added that the figures also coincided with the gold
market being overextended in the short term after a stunning run
higher.
"The gold market has reacted more rigorously than the dollar
because the metal has been so strong in the last several weeks."
DOLLAR FIGHTS BACK
The dollar rose 0.8 percent against a basket of currencies
<.DXY>, while the euro was last traded at $1.4950 <EUR=>, with
some economists suggesting U.S. interest rates may be able to
rise sooner than expected.
"The data point to a transition in the economy from a deep
recession to a modest recovery," said William Sullivan, chief
economist, JVB Financial Group in Florida.
"This will encourage the Fed to be more vocal about an exit
strategy from their highly accommodative posture."
On the investment front, demand for gold remained firm, with
the world's largest gold-backed exchange-traded fund, the SPDR
Gold Trust <GLD>, saying its holdings rose 0.276 tonnes to
1,131.490 tonnes on Thursday. []
Elsewhere, metals consultancy GFMS said China will overtake
India as the world's largest gold consumer in 2009, with total
demand forecast at 432 tonnes. Indian demand has been pressured
this year by rising prices. []
Among other precious metals, silver <XAG=> was bid at $18.70
an ounce against $18.80 late on Thursday in New York. The
world's largest silver ETF, the iShares Silver Trust <SLV>, said
its holdings rose 113.05 tonnes to a record 9,514.35 tonnes on
Thursday. []
Platinum <XPT=> was at $1,474 an ounce against $1,480.50,
while palladium <XPD=> was at $378 against $380.50.
ETF Securities, which operates exchange-traded products that
issue securities backed by physical metal, said holdings of its
platinum and palladium ETPs rose to record levels on Thursday,
up 0.3 percent and 0.7 percent respectively.
(Additional reporting by Frank Tang in New York; Editing by
Nigel Hunt)
((jan.harvey@thomsonreuters.com; +44 207 542 7744; Reuters
Messaging: jan.harvey.reuters.com@reuters.net))
