U.S. gold rises as dollar slips on weak jobs data

NEW YORK, Sept 5 (Reuters) - U.S. gold rose on Friday as the dollar
declined after the U.S. August labor report showed a sharp drop in payrolls
and an increase in the unemployment rate to a nearly 5-year high, traders
said.

Note: For detailed report click on [GOL/].

GOLD

* December gold GCZ8 gained $10.10 to $813.30 an ounce on the COMEX
division of the New York Mercantile Exchange by 10:21 a.m. EDT (1421 GMT).

* December extended its high up to $824.20, the highest since Tuesday.
Gold was trading slightly lower before the jobs data came out, and set a
session low at $794.80 an ounce.

* COMEX estimated 10:00 a.m. gold volume at 110,252 lots. Options tally
came to 3,980 lots.

* A drop in the dollar and weaker-than-expected jobs data pushed gold
into positive territory-traders.

* The U.S dollar fell against the euro for the first time in seven
sessions after the U.S. Labor Department showed a more dramatic decline in
August jobs creation than anticipated and a jump in the unemployment rate.
[USD/]

* Dollar-denominated gold strengthened as some investors took advantage
of the currency differential in overseas markets from a falling dollar.

* Other participants bought gold because of the flight-to-safety play
from the weaker economic prospects displayed in the U.S. labor
report-traders.

* The Labor Department said 84,000 jobs were lost in August, a greater
number than the 75,000 forecast by economists and the 60,000 lost payrolls
in July. [nN05400604]

* The report also showed a jump in the unemployment rate to 6.1
percent, its highest in almost 5 years.

* Spot gold advanced to $809.90/811.35 an ounce, up from $796.15/797.75
at Thursday's close.

* London's afternoon gold fix was set at $808.50.

SILVER

* December SIZ8 lost 18.50 cents to $12.7550 an ounce.

* The contract range spanned $12.70 to $13.19 an ounce.

* COMEX estimated 10:00 a.m. volume at 15,092 lots.

* Spot silver <XAG=> slipped to $12.66/12.72 an ounce, down from
Thursday's late quote at $12.74/12.80.

* The silver fix was set lower at $12.72.

PLATINUM - October PLV8 fell $16.20 to $1,386.00 an ounce.

* Demand for metal, used for autocatalysts, was in questions after this
week's report showing a sharp drop in U.S. car sales.

* Spot platinum <XPT=> dropped to $1,376.00/1396.00 an ounce, down from
the late Thursday quote at $1,391.50/1,411.50.

PALLADIUM - December palladium PAZ8 lost $12.15 to $277.65 an ounce,
down with platinum.

* Spot palladium <XPD=> dropped to $274.00/282.00 from $281.50/289.50
late on Thursday.
(Reporting by Carole Vaporean; Editing by John Picinich)