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 Thursday as a much-better-than-expected jobs report put pressure on the precious metal.

The most active gold contract for June delivery lost 27.6 U.S. dollars, or 2.28 percent, to settle at 1,182.4 dollars per ounce.

A report released by the U.S. Department of Labor showed initial jobless claims falling sharply by 34,000 to 262,000 during the April 25 week. Analysts note that this is the lowest level since April 2000.

Analysts believe that this positive jobs report may lead the U. S. central bank, the Federal Reserve, to raise interest rates sooner rather than later, as they have been looking for positive economic indicators.

The U.S. Dollar Index fell, giving gold a slight amount of support, but not enough to negate the effects of the positive jobless report. The index, a measure of the dollar against a basket of major currencies, fell by 0.29 percent to 94.93 as of 16: 09 GMT. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Silver for July delivery fell 54.9 cents, or 3.29 percent, to close at 16.153 dollars per ounce. Platinum for July delivery lost 21.1 dollars, or 1.82 percent, to close at 1,140.4 dollars per ounce. Endite