Gold plunges on unexpected lay-off data, strong dollar

CHICAGO, June 5 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange went sharply down on Friday as the U.S. dollar bounced quickly and the better-than-expected jobless data made investors more confident in economy recovery. Silver and platinum both finished lower, too.

Gold price for August delivery lost 19.70 U.S. dollars, or 2 percent, to settle at 962.60 dollars an ounce, giving up the previous session's gain.

Although the U.S. unemployment rate jumped to 9.4 percent in May, the highest level since 1984, the pace of layoffs eased unexpectedly, adding to evidence that the recession is improved.

The U.S. Labor Department said on Friday that employers cut 345,000 jobs last month, far fewer than the more than 500,000 job losses that had been forecast by the economists. It is the fourth straight month that the pace of layoffs slowed, which is considered as the sign that the labor market is stabilizing.

Analysts indicated the bullish jobless data eased worries on economic uncertainty and market turmoil, reducing gold's appeal as safety assets.

Buoyed by the good news in labor market, dollar went up quickly from the intraday lowest level of 1.4267 dollars against euro early in the morning and climbed to 1.3994 dollars by the end of gold floor trading time. This gave additional pressure on the precious metal.

July silver finished at 15.388 dollars per ounce, down 50.7 cents. July platinum fell 7.10 dollars to 1,286.20 dollars an ounce