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Gold moves down

NEW YORK: COMEX gold drifted lower at midday in dull trade, after an early attempt at the upside ran out of steam amid trade selling, traders said.

Analysts downplayed the importance of this morning's lower-than-expected rise in U.S. payrolls, adding that the report was on balance neutral for the precious metals.

At 1300 EDT, December gold was off $1.10 at $389.20 an ounce, traded between $390.50, a one-week high, and $388.90.

Dealers quoted bullion at $383.40/$383.90.

Gold's open interest rose more than 2,500 lots Thursday to 173,773, suggesting that fresh long positions were taken during the session's modest rally.

Silver

NEW YORK: COMEX silver stayed firmer at midday, although the market was quiet and held to narrow ranges after an early stab at upside resistance was repelled by trade selling, floor sources said.

The precious metals were little moved by weaker-than-expected U.S. jobs data that analysts saw as neutral for the precious metals.

At 1230 EDT, September silver was up 3.0 cents at $5.20 an ounce, traded narrowly between $5.23, a 1-1/2 week high, and $5.18. A low of $5.165 was hit on ACCESS overnight.

He noted that COMEX silver stocks remain low, after declining to 6-1/2 year lows in recent months. -Reuter