Gold slips after U.S. payrolls data

By Nick Vinocur and Jan Harvey

LONDON (Reuters) - Gold fell below $930 per ounce on Thursday as the dollar rose versus a basket of six currencies after a larger than expected dip in U.S. non-farm payrolls, which prompted some buying of the currency as a haven from risk.

The euro also extended losses against the dollar after European Central Bank chief Jean Claude Trichet said euro zone activity was likely to be weak for the rest of the year. <FRX/>

Spot gold fell to a low of $926.10 and was at $930.30 at 1516 GMT (11:16 a.m. EDT), versus $939.95 late in New York on Wednesday.

"The dollar has gone up because the data has made everyone nervous, buying government bonds as a safe-haven asset," said Matthew Turner, an analyst at VM Group.

U.S. employers cut 467,000 jobs in June, far more than expected, while the unemployment rate rose to 9.5 percent.

The worse-than-expected data spurred safe-haven flows into the dollar, making gold pricier for holders of other currencies.

Riskier assets, such as equities and some currencies, slipped in the wake of the numbers. While gold is often seen as a safe haven asset, moves in the dollar are taking precedence as the metal's main price driver.

Ongoing volatility in the currency markets is set to benefit gold, according to traders.