NEW YORK, June 5 (Reuters) - Gold futures dropped more than 2 percent in heavy trading on Friday as the dollar rebounded sharply after a report showed that U.S. job losses in May were far less than expected, dampening bullion's appeal as a safe-haven investment. For the latest detailed report, click on [GOL/]. GOLD * August GCQ9 down $21.30, or 2.2 percent, at $961.00 an ounce at 10:52 a.m. EDT (1452 GMT) on the COMEX division of the New York Mercantile Exchange. * Ranged from $955.20 to $985. * Gold tumbled following news that U.S. employers cut 345,000 jobs last month, the fewest since September, a sign that the economy's severe weakness was diminishing. * However, the Labor Department said the unemployment rate raced to 9.4 percent, the highest since a matching rate in July 1983, from 8.9 percent in April. [ID:nN05274048] * The good employment figure lessened the need for flight-to-quality demand in gold, and a rising interest rate environment was negative to non-interest bearing gold - Bill O'Neill, managing partner at LOGIC Advisors. * Sell-stops and pre-weekend selling in gold futures were triggered after the U.S. nonfarm payroll report, which was not inflationary and failed to spur bullion buying - George Gero, vice president of RBC Capital Market Global Futures. * The dynamics of a bull market is still in place because of longer-term currency debasing amid liquidity addition and potential inflation - O'Neill. * Gold could weaken further, as the metal has corrected sharply after it approached the $1,000 level each time in the past two years - analysts. * COMEX estimated 9 a.m. volume at 55,675 lots * Gold/oil ratio at 14.02, lower than the 14.14 of the previous session. * Spot gold traded at $960.70, down 1.9 percent from its late Thursday quote in New York. * London gold fix $962 an ounce. SILVER * July SIN9 down 54.5 cents, or 3.4 percent, at $15.350 an ounce, tracking gold's sharp decline. * Ranged from $15.160 to $15.980. * COMEX estimated 9 a.m. volume at 12,176 lots. * Spot silver was at $15.33 an ounce, down 3.3 percent from its previous finish. * London silver fix at $15.650 an ounce. PLATINUM * July PLN9 down $25.30, or 2 percent, at $1,268.00 an ounce due to a dollar bounce after reaching above $1,300 in the previous session. * Platinum prices affected by an uncertain auto industry, as the global car industry accounts for 60 percent of total platinum demand for use in automobile catalytic converters. * Spot platinum at $1,263.50 an ounce, down 2.1 percent from its late Thursday quote. PALLADIUM * September PAU9 up 25 cents at $255.65 an ounce on thin buying. * Spot palladium was at $255.50 an ounce, up 1.2 percent from its previous finish. (Reporting by Frank Tang; Editing by Lisa Shumaker)

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