Gold futures rise on weaker-than-expected March jobs data

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday, after U.S. jobs data dampened expectations that the U.S. Federal Reserve will raise interest rates, but the metal gave up most gains as the dollar rose and safe haven demand ebbed.

The most active gold contract for June delivery rose 4 U.S. dollars, or 0.32 percent, to settle at 1,257.3 dollars per ounce.

Gold extended gains after the government said the U.S. economy created just 98,000 new jobs in March, far below market expectation . The unemployment rate, however, fell to 4.5 percent from 4.7 percent as the number of people who found work outstripped the labor force.

A surge by the dollar saw gold and other metals lose altitude. A stronger U.S. currency can weigh on commodities priced in dollars as it makes them more expensive to users of other currencies.

From a technical perspective, Gold has struggled to break above its 200-day moving average in previous sessions but broke out above that key technical level intraday and has tested its upper resistance at 1,264 dollars per ounce, the Feb. 28 high.

Gold is often used as a hedge against political and financial uncertainty and security risks. It has benefited alongside other assets considered safe, such as the yen and U.S. Treasury bonds.

Analysts say this support is also unlikely to be sustained as the market shifts its attention back to the elections in France and monetary policy.

Silver for May delivery fell 0.95 cents, or 0.52 percent, to close at 18.151 dollars per ounce. Platinum for July delivery rose 3.7 dollars, or 0.39 percent, to close at 962.60 dollars per ounce. Enditem