US gold closes down but weak ISM, dollar cut losses

NEW YORK, Sept 3 (Reuters) - U.S. gold futures remained
lower throughout Friday's session after better-than-expected
U.S. payrolls data, but minimized losses by the end as the the
ISM service sector data came in weaker than forecast and the
dollar fell, traders said.

* For the latest detailed report, click on [GOL/].

GOLD

* COMEX December gold futures GCZ0 lost $2.30 to settle
at $1,251.10 an ounce on the COMEX division of the NYMEX.

* Range spanned $1,239.20, a three-day low, to $1,255.60, a
lower high.

* Gold investors also trimmed losses ahead of the long U.S.
holiday weekend, with some players not wanting to leave large
open positions for three days - traders.

* In early business, gold slid over 1 percent following the
U.S. employment report, which came in much better than expected
- traders.

* U.S. non-farm payrolls fell by 54,000 in August, but gold
traders had set up for economists' average forecast for a
100,000 decline in August payrolls.

* And private employment, considered a better gauge of
labor market health, increased more than had been forecast. For
details, see [ID:nN02227856].

* Later, gold pulled up from its three-day lows when
separate data showed the U.S. non-manufacturing sector grew
more slowly than expected in August and the sector's employment
shrank.

* The ISM report's employment component fell to 48.2 from
50.9, and new orders dipped sharply to 52.4 from 56.7,
suggesting a slowdown in the sector. STORY: [ID:nN03111828]
TABLE: [ID:nEAP102700]

* Dollar declines also helped gold trim early losses -
traders.

* U.S. dollar was down against most foreign currencies
after the surprisingly strong non-farm payroll report eased
worries about the economy and boosted the appetite for riskier
assets. [USD/]

* Though New York markets will be shut on Monday, gold
should be able to overcome Friday's declines - analysts.

* "Gold is in a longer-term bull market and it's quite
normal for a recovery to come off the dip. The jobs number
wasn't as bad as people thought, but it still wasn't a good
number," said Sterling Smith, analyst for Country Hedging Inc.
in St. Paul, Minnesota.

* Smith sees gold reaching new all-time highs by the end of
September.

* Next week, a light economic calendar and a week with two
holidays might keep trade light and ranges narrow - traders.

* COMEX estimated final gold volume at a healthy 105,918
lots.

* Gold bullion XAU= slipped to $1,246.70 an ounce by 3:36
p.m. EDT (1936 GMT) from $1,250.74 an ounce in late Thursday
dealings.

* London afternoon gold fix XAUFIX= was set $11.50 lower
at $1,240.50 an ounce.

SILVER

* COMEX December silver SIZ0 jumped 27.70 cents to close
at $19.949 an ounce, rising with industrial metals on
better-than-forecast jobs data.

* Range spanned $19.505 to $19.985 an ounce.

* COMEX estimated final volume at 30,391 lots.

* Spot silver XAG= was sharply higher at $19.82 in late
New York trade, down from $19.58 an ounce at the previous
session end.

* London silver fix XAGFIX= was set higher at $19.66 an
ounce.

PLATINUM

* NYMEX October platinum PLV0 ends $9.60 higher at
$1,561.10 an ounce.

* Platinum prices rose with other industrial metals
-trades.

* Spot platinum XPT= ends higher at $1,551 after
$1,543.10 an ounce previously.

PALLADIUM

* NYMEX December palladium PAZ0 closes with $6.20 gains
at $531.45 an ounce, also lifted by industrial metal gains.

* Spot palladium XPD= increased to $527 from $520.93 an
ounce on Thursday.
Prices at 3:27 p.m. EDT (1927 GMT)

LAST/ NET PCT YTD

CLOSE CHG CHG CHG
US gold GCZ0 1251.10 -2.30 -0.2% 14.1%
US silver SIZ0 19.915 0.277 0.0% 18.2%
US platinum PLV0 1561.10 9.60 0.6% 6.1%
US palladium PAZ0 529.05 5.60 1.1% 29.4%
Gold XAU= 1247.10 -3.19 -0.3% 13.8%
Silver XAG= 19.85 0.27 1.4% 17.9%
Platinum XPT= 1553.00 9.90 0.6% 6.0%
Palladium XPD= 527.50 6.57 1.3% 30.1%
Gold Fix XAUFIX= 1240.50 -11.50 -0.9% 12.4%
Silver Fix XAGFIX= 19.66 21.00 1.1% 15.7%
Platinum Fix XPTFIX= 1553.00 2.00 0.1% 5.9%
Palladium Fix XPDFIX= 524.00 2.00 0.4% 30.3%
(Reporting by Carole Vaporean; Editing by Marguerita Choy)