Gold prices held onto gains of nearly 1 percent on Friday, achieved after weak US nonfarm payrolls data renewed fears about the health of the world's biggest economy and spurred safe-haven buying. Spot gold rose to a two-week high of $1,545.30 an ounce, and steadied around $1,540.75 by 1:21 pm EDT (1721 GMT) against $1,531.85 late in New York on Thursday.
US gold futures for August delivery rose $10.90 to $1,541.50, having reached a two-week high at $1,546. Employers in June added the smallest number of new jobs in nine months, dashing hopes of a pick-up in economic recovery. Nonfarm payrolls rose by 18,000, the Labour Department said, well below economists' expectations for a 90,000 rise.
"It is the public-sector employment which was the disappointing factor," said Peter Fertig, a metals consultant at Quantitative Commodity Research. "The market overreacted after yesterday's ADP report showed a strong increase in the private-sector payrolls. "You have some safe-haven flows (into gold)," he said.
The dollar dropped against several currencies as the US jobs data strengthened expectations the Federal Reserve will leave interest rates low well into next year, prompting investors to embrace alternate safe-havens. A weaker dollar often boosts dollar-denominated assets, such as gold, because of the advantage it provides buyers outside the United States. Among other precious metals, silver hit a four-week peak at $36.82 an ounce, and remained higher around $36.51 against $36.41.
Spot platinum slipped to $1,729.99 an ounce from $1,739.85 on Thursday. Spot palladium was down at $775.47 an ounce against $781.55 previously. The platinum:palladium ratio - the number of ounces of palladium needed to buy an ounce of platinum - held at its lowest in more than four months at 2.23.