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

Gold futures on the COMEX division of the New York Mercantile Exchange fell sharply on Friday as a much-anticipated U.S. jobs report showed much-better-than-expected job growth.

The most active gold contract for April delivery fell 31.9 U.S. dollars, or 2.67 percent, to settle at 1,164.30 dollars per ounce.

Gold was put under extensive pressure as a report from the U.S. Department of Labor released on Friday showed a much improved and better-than-expected jobs numbers, analysts said.

The unemployment rate fell sharply to 5.5 percent, the lowest level since May 2008, from 5.7 percent in January, while payroll jobs increased by 295,000 in February, the report showed. Analysts noted that the report fueled speculation the Federal Reserve will raise interest rates sooner rather than later.

In addition, a report from the U.S. Department of Commerce showed the U.S. trade balance was improving. The report showed the U.S. trade gap shrank to 41.8 billion dollars in January, and revised December's number to 45.6 billion dollars.

Both of these reports gave the U.S. dollar strong support, putting additional pressure on gold as the precious metal becomes more expansive.

Silver for May delivery fell 35.1 cents, or 2.17 percent, to close at 15.807 dollars per ounce. Platinum for April delivery dropped 21.3 dollars, or 1.80 percent, to close at 1,158.80 dollars per ounce. Endite