GOLD slipped slightly today on market caution ahead of key US jobs data, as well as chart-based resistance.
The stronger US dollar -- which was boosted by concerns over Greek finances and a smaller-than-expected decline in US private payrolls data -- also pressured gold.
April gold fell $US6, or 0.5 per cent, to settle at $US1112 an ounce on the Comex division of the New York Mercantile Exchange. Shortly after gold closed, the ICE Futures US Dollar Index was up 0.319 point, or 0.4 per cent, at 79.333 points.
KEY COMMODITY PRICES: oil, base metals, gold, livestock and wheat
A stronger US dollar often hurts US dollar-denominated metals like gold by making them more expensive in other currencies.
The greenback gained ground after news that private-sector jobs in the US fell by 22,000 in January, compared with the 30,000-job drop economists had expected, according to a national employment report by payroll giant Automatic Data Processing (ADP) and consultancy Macroeconomic Advisers.
The ADP survey tallies only private-sector jobs, while the Bureau of Labour Statistics' non-farm payroll data, due for release late this week, include government workers.
The January payrolls report is expected to show that the economy neither lost nor gained jobs in the first month of the new year.
The US dollar also benefited at the expense of the euro on news of a strike by Greece's largest union, which could hamper the nation's plans to get its finances in order.
Gold futures also ran into technical resistance.
The market is "a little tired" after bumping up against the $US1126 area, said George Gero, vice-president with RBC Capital Markets Global Futures.
Resistance for the April contract came from a trendline running through the December high of $US1229 and the January high of $US1166.70, said Derrick Lewis, vice-president and senior trader with Cleartrade Commodities.
"Until gold can close solidly above this trendline and both the 18-day ($US1114.70) and 50-day ($US1129.90) moving averages, traders are more apt to sell rallies," he said.
Comex silver futures declined with gold prices amid caution ahead of the US payrolls data, said Frank Lesh, broker and futures analyst with FuturePath Trading.
Comex March silver fell US42.6c, or 2.5 per cent, to settle at $US16.317 an ounce.
Silver fell further than gold in percentage terms as it also came under pressure with copper. Comex March copper lost 3.8 per cent on the day.
As China moves to tame its economic growth, the world's largest commodities consumer has slowed its buying of base metals, said Country Hedging analyst Sterling Smith.
Expectations of higher US interest rates are also hampering the base metals and silver, he said. Silver is more widely used for industrial purposes than gold, essentially giving it status as both a base and precious metal.
Platinum and palladium also fell with gold as the US dollar ticked higher. There was also some profit-taking after recent gains, a trader said.
Nymex April platinum lost $US2.60, or 0.2 per cent, to settle at $US1576.20 an ounce while March palladium fell $US7.95, or 1.8 per cent, to settle at $US436.80 an ounce.
The moves come against a backdrop of increased speculative activity after the launch of US exchange-traded funds for the metals, the trader said.
