1st LD Writethru: Gold down sharply on strong U.S. jobs data

Gold futures on the COMEX division of the New York Mercantile Exchange fell sharply on Friday as strong U.S. employment data dampened demand for safe-haven assets.

The most active gold contract for April delivery fell 28.1 U.S. dollars, or 2.23 percent, to settle at 1,234.60 dollars per ounce.

Gold's fall came after new figures pointed to an improving labor market in the United States, prompting investors to pull out of bonds and gold, traditional havens in times of uncertainty.

The U.S. Department of Labor said that total nonfarm payroll jobs increased 257,000 in January and the unemployment rate inched up a little to 5.7 percent from 5.6 percent. It also revised upward the November figure by 86,000 to 423,000.

The rosy picture, analysts said, may encourage the Federal Reserve to mull raising interest rates as early as mid-2015, which puts additional pressure on gold.

The Dollar Spot Index, a measure of the dollar against a basket of major currencies, rose sharply 1.22 percent to 94.7140, further dampening gold.

However, analysts noted that continued uncertainty in Greece and weakness in the eurozone prompted some safe haven demand, which may have prevented gold from falling further.

Silver for March delivery lost 50.2 cents, or 2.92 percent, to close at 16.694 dollars per ounce. Platinum for April delivery dropped 28.1 dollars, or 2.25 percent, to close at 1,221.60 dollars per ounce. Endite