* Buyers wary of gold near-term after Sept US jobs data
* Bulls see price at above $1,800/oz in coming months
* ETP holdings at record highs
* S. African labour unrest continues, but platinum dips
(Updates market activity to U.S. session, adds NEW YORK to
By Amanda Cooper and Barani Krishnan
LONDON/NEW YORK, Oct 8 Gold fell on Monday,
extending its losses from the previous session to mark the
largest two-day drop since August, as buyers remained wary of
the precious metal's prospects after positive U.S. jobs data
The dollar <.DXY > rebounded from a two-week low against the
euro as investors focused on the likelihood of better
economic recovery in the United States than in Europe and Asia
in the near-term, narrowing the scope for U.S. stimulus action
that has lately boosted gold.
"If we get slightly better U.S. data going forward, which
gives more support for the U.S. economic recovery, we get a
stronger dollar," Citigroup analyst David Wilson said.
"Obviously, Europe is still continuing to struggle, and that
would suggest that the rally is done for the time being,
although I'm not saying gold won't see more upside further out."
U.S. payrolls data for September, released on Friday, showed
employers added 114,000 workers last month, bringing the jobless
rate to 7.8 percent -- the lowest since President Obama took
To help jobs recovery, the U.S. Federal Reserve pledged in
September to buy $40 billion a month in mortgage-backed
securities to lower borrowing rates and keep credit flowing
through the economy. The Fed's pledge is seen good for only as
long as job creation remains sluggish.
In Monday's trade, the spot price of gold was down
about 0.4 percent, hovering around $1,780 an ounce by 1800 GMT
and extending Friday's 0.5 percent drop.
The near 1-percent decline since Thursday's settlement is
the sharpest decline for spot gold over a two-day period since
August, Thomson Reuters data showed.
"It's quite possible that we do see further follow-through
selling because we had a sharp move up in the last quarter,"
said Mark O'Byrne, executive director at bullion dealer
U.S. gold futures' most-active contract, December,
settled down 0.3 percent, or $5.10, at $1,775.70 an ounce.
Gold has risen by more than 13 percent in value so far this
year, putting it on track for a 12th year of gains.
Market bulls are optimistic that bullion will trade above
$1,800 an ounce in coming months, helped by struggling global
growth, if not continued U.S. economic weakness.
"There is strong resistance at $1,800, so I wouldn't be
surprised if gold was to come back to $1,750 or $1,700, but in
the long term, there is a secular bull market," GoldCore's
The World Bank cut its economic growth forecasts for the
East Asia and Pacific region and said there was a risk the
slowdown in China could worsen and last longer than many
analysts have forecast.
ETP HOLDINGS AT RECORD
Momentum in gold buying may have slowed, but longer-term
demand -- reflected by continued inflow of the precious metal
into exchange-traded products -- remains healthy.
Holdings of gold in ETPs touched a new record of 74.725
million ounces by Friday's close. So far in 2012, holdings have
risen by a net 5.7 million ounces, and 4.5 million of this total
have flowed in over the past two months alone.
Anticipation of gold-friendly monetary policy by the world's
major central banks, along with a seasonal pick-up in buying,
especially in top consumer India, have buoyed bullion prices and
enticed more investment.
The world's largest ETPs now hold more gold than the
combined reported reserves of Switzerland and China and would
rank sixth below France in a list of top official holders of
In other precious metals, silver fell by 1.4 percent
to $33.98 an ounce, bringing the loss in value over the last two
days to more than 3 percent, and wiping out gains over the last
two weeks that took the market to seven-month highs.
Platinum was down 0.9 percent at $1,689 an ounce,
while palladium fell 0.5 percent to $653.47 an ounce.
Production of platinum was still paralysed across much of
South Africa -- home to the world's largest platinum reserves --
as worker strikes idled some of the world's largest platinum
mines, including those of Anglo American Platinum.
Xstrata's Eland platinum mine became the latest site
to suffer disruption after workers staged an illegal strike,
leaving it operating on a skeleton staff, the company said on
Thousands of platinum industry workers in South Africa have
downed tools to demand higher wages, and since mid-August,
nearly 50 people have died in clashes with police and between
rival trade unions.
(Additional reporting by Clare Hutchison in London; Editing by