NEW YORK, Aug 7 (Reuters) - Gold futures dropped in choppy trade Friday on the back of a dollar rally following optimistic U.S. jobs data, as the bullion market digested the news that the new central bank gold agreement reduced the maximum of total gold that could be sold. For the latest detailed report, click on [GOL/]. GOLD * December gold GCZ9 down $4.90 at $958 an ounce at 10:43 a.m. EDT (1443 GMT) on the COMEX division of the New York Mercantile Exchange. * Ranging from $955.50 to $968 an ounce. * The dollar rose sharply against the euro and was on track to post the biggest gain versus the yen in two months, dampening gold's appeal as a hedge against the falling U.S. currency. [USD/] * Earlier in the session, gold futures rose toward $970 an ounce as the dollar initially fell versus the euro in a knee-jerk action after data showed the U.S. non-farm payrolls fell 247,000 jobs in July, the least in any month since last August. The report provided the clearest evidence yet that the economy was turning around. * European central banks have agreed to extend a cap on gold sales for another five years, but reduced the upper limit of sales to 2,000 tonnes from the current 2,500 tonnes, and annual sales would not exceed 400 tonnes. * The central banks said in a statement they recognized the International Monetary Fund's intention to sell 403 tonnes of gold and noted that such sales can be accommodated within the above ceiling. [ID:nFAB013215] * The comments that the IMF's planned sale can be accommodated within the limits of the agreement shows that the signatories are not expecting to utilize the full 400 tonnes per annum from their own disposal plans - UBS Investment Bank. * Gold/oil ratio at 13.38, higher than 13.14 from the previous session * COMEX estimated 11 a.m. gold volume at 70,024 lots. * Spot gold XAU= at $965.05 an ounce, compared with $962.15 an ounce in late New York business on Thursday. * London afternoon gold fix XAUFIX= at $956 an ounce. SILVER * September silver SIU9 down 1.5 cents at $14.630 an ounce, tracking gold's decline. * Ranging from $14.490 to $14.890 an ounce. * COMEX estimated 11 a.m. silver volume at 31,907 lots. * Spot silver XAG= was at $14.66 an ounce versus $14.54 an ounce in Thursday's late quote. * London silver fix XAGFIX= at $14.65 an ounce. PLATINUM * October platinum PLV9 down $1.90 at $1,261.50 an ounce on broad-based precious metals weakness, but supplies worries from top producer South Africa provided underlying support. * South Africa's biggest union and state power firm Eskom voiced hope ahead of talks on Friday of averting a strike that could paralyze Africa's biggest economy, a top producer of precious metals. [ID:nL779313] * Spot platinum XPT= at $1,256 versus $1,260. PALLADIUM * September palladium PAU9 up $2.20 at $273.30 an ounce on pent-up demand. * Spot palladium XPD= at $271, against its previous finish of $269.50. Prices at 10:44 a.m. EDT (1444 GMT) Last Change Pct 2008 YTD Chg Close % Chg US gold GCZ9 958.30 -4.60 -0.5 884.30 8.4 US silver SIU9 14.635 -0.010 -0.1 11.295 29.6 US platinum PLV9 1264.80 1.40 0.1 941.50 34.3 US palladium PAU9 272.80 1.70 0.6 188.70 44.6 Gold XAU= 955.50 -6.65 -0.7 878.200 8.8 Silver XAG= 14.64 0.10 0.7 11.30 29.6 Platinum XPT= 1258.00 -2.00 -0.2 924.50 36.1 Palladium XPD= 270.00 0.50 0.2 184.50 46.3 Gold Fix XAUFIX= 956.00 -8.00 -0.8 836.50 14.3 Silver Fix XAGFIX= 14.650 -0.020 -0.1 14.760 -0.7 Platinum Fix XPTFIX= 1281.00 0.00 0.0 1529.00 -16.2 Palladium Fix XPDFIX= 273.00 0.00 0.0 365.00 -25.2 (Reporting by Frank Tang; Editing by Lisa Shumaker)

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