* Spot gold up $10, 0.5 pct, after gloomy jobs data
* Dollar index, stock futures tumble
* Trading activity nearly nil due Easter holiday
* Bullion still set for 1.8 pct loss after Fed minutes
(Recasts with jobs data, updates throughout)
By Jonathan Leff
NEW YORK, April 6 Gold rose modestly in anaemic
spot trade on Friday after disappointing U.S. payrolls figures
revived talk about an extension of the Federal Reserve's
stimulus measure, but gains were too mild to stem the first
weekly loss in three weeks.
With only a handful of ticks registering in the cash market
due to the U.S. and European exchange holidays, spot gold
was bid at $1,637.99 an ounce by 8.54 am EST (1354 GMT), up
about 0.5 percent on the day and around $7 higher than just
before the U.S. non-farm payrolls data. For the week bullion was
down 1.8 percent.
U.S. payrolls rose by just 120,000 jobs last month, lower
than even the most pessimistic analyst had predicted and the
smallest gain since October, the Labor Department said on
Friday. The unemployment rate fell to a three-year low of 8.2
percent as the labour force shrank.
"This is going to turn up the heat on the debate for QE3
since a deceleration in the economic data has been highlighted
as a pre-requisite for such a programme," said Thomas Simons,
money market economist at Jefferies & Co in New York.
The S&P stock index futures fell more than 1 percent
and the U.S. dollar index lost 0.3 percent as the data
suggested gloomier economic conditions than expected, but with
equity and money markets shut for the holiday the full extent of
reaction will not be apparent until Monday.
With trading conditions so thin, it is unclear whether the
data will be enough to dispel the downbeat mood that prevailed
on Tuesday, when minutes from a U.S. Federal Reserve policy
meeting showed a waning appetite for another round of bond
Bullion touched a near three-month low of $1,611.80 earlier
this week, but has cautiously crept higher in the past two days
on technical buying and, now, new hope that the door for further
monetary policy support may be open wider than earlier believed.
Earlier in the week strength in the dollar had dimmed gold's
safe-haven appeal as fears about the euro zone debt crisis
resurfaced after a Spanish government debt auction this week was
A stronger greenback makes dollar-priced commodities more
expensive for buyers holding other currencies.
Spot silver was little changed after the data,
holding gains of 0.2 percent at $31.72, extending a 1.1-percent
rise in the previous session. The metal is on course for a
weekly fall of 1.5 percent.
(Additional reporting by Rujun Shen in Singapore; editing by