* Gold rises, then falls, in wake of U.S. jobs data
* May non-farm payrolls dip by better-than-expected 345,000
* Platinum, palladium benefit from fund buying
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By Jan Harvey
LONDON, June 5 (Reuters) - Gold prices slipped 2 percent in
choppy trade on Friday, as the euro gave up initial gains
against the dollar after U.S. non-farm payrolls data, amid fears
the single currency's move higher had been overdone.
Bullion hit session highs of $982.45 an ounce in the
immediate wake of the data as the dollar dipped versus the euro,
but swiftly turned lower as the U.S. unit changed direction.
Spot gold <XAU=> touched a one-week low of $955.35 an
ounce, and was bid at $956.00 an ounce at 1323 GMT, against
$979.10 an ounce late in New York on Thursday.
U.S. gold futures for June delivery <GCM9> on the COMEX
division of the New York Mercantile Exchange fell $25.90 to
$955.30 an ounce.
Standard Bank analyst Walter de Wet said in the medium term
the payrolls numbers, along with other better-than-forecast data
released recently, may reassure investors the economy is no
longer worsening, and could fuel fears of future inflation.
"But in the short term, the dollar is going to drive
prices," he said. "People will follow the dollar."
U.S. employers cut 345,000 jobs last month, the fewest since
September and far less than forecast, a government report showed
on Friday. []
The euro initially strengthened after the report but quickly
gave up gains as traders took profits on the currency. []
Crude prices, strength in which helped fuel a run higher in
gold on Thursday, dipped, while most industrial metals such as
copper and nickel also declined. Oil is often seen as a good
indicator of interest in commodities as an asset class. []
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INFLOWS
Investment demand was relatively quiet, with holdings of the
SPDR Gold Trust, the largest gold exchange-traded fund, steady
on Thursday. London's ETF Securities saw an inflow of nearly
28,000 ounces into its three gold ETFs. []
Buying in India, the leading global bullion consumer, was
subdued as customers anticipated lower prices. []
Silver <XAG=> was at $15.32 an ounce against $15.85.
Palladium rose, extending the previous session's fund-driven
gains, while platinum edged lower.
Platinum <XPT=> was at $1,268 an ounce against $1,290.50,
while palladium <XPD=> was at $255.50 against $252.50.
The metals were lifted on Thursday by gains in other
industrial commodities like oil and copper, which benefited from
hopes the downturn may bottom out. However, the gains looked to
be investment led rather than consumer led, traders said.
"Platinum seems to be getting a lift from the ETF markets,"
Commerzbank trader Rory McVeigh said. "Sponge is still at a
discount....indicating that the industrials aren't taking metal
on yet."
Platinum sponge is usually used by industrial consumers,
while ingot is used by buyers such as jewellers and investors.
(Editing by William Hardy)
