Metals futures beat a broad-based retreat in early dealings NEW YORK (MarketWatch) -- Gold and silver futures fell sharply Friday, extending their weekly losses as an upbeat U.S. employment report boosted hopes for an economic recovery and served to reduce the safe-haven investment appeal of precious metals. Nonfarm payroll fell 345,000 in May, the Labor Department reported, but this drop was much less than the 500,000 expected by analysts surveyed by MarketWatch. The decline in payrolls was the smallest since September. Gold for June delivery fell $23.70, or 2.4%, to $957.50 an ounce on the Comex division of the New York Mercantile Exchange. The more active August contract also lost 2.4%, surrendering $23.90 to stand at $958.40. GLD 93.92, -2.31, -2.40% 100908070 09FMAM Meanwhile, July silver skidded 71.5 cents, or 4.5%, to $15.18 an ounce. "Sell on the news," said George Gero, a precious-metals trader for RBC Capital Markets. "The jobs data are better than expected, helping reducing people's worries." The selling meant futures prices for both metals were headed for a weekly loss of more than 2%, and spread to other metals. July copper lost 3 cents, or 1.3%, to $2.271 a pound. July platinum declined $24.30, or 1.9%, to $1,269 an ounce, while the September contract for sister metal palladium fell 95 cents, or 0.4%, to $254.45 an ounce. Also in the Labor Department's payrolls report, U.S. joblessness increased more than expected last month. Unemployment rose by 787,000 to 14.5 million, pushing the jobless rate to 9.4% -- the highest since August 1983 -- from April's 8.9%. See Economic Report. DXY 80.21, +0.79, +1.00% 9085807570 09AOMM A stronger dollar also helped dollar-denominated prices of metals move lower. The dollar index (DXY 80.21, +0.79, +1.00%) rose 1% to reclaim the 80 mark. Meanwhile, holdings in the SPDR Gold Trust (GLD 93.92, -2.31, -2.40%) stood at 1,132.50 metric tons Thursday, unchanged from the previous day, according to latest data from the biggest exchange-traded fund backed by gold. Holdings in the iShare Silver Trust (SLV 15.02, -0.61, -3.89%) , the biggest silver ETF, stood at 8,605.43 metric tons, also unchanged from a day ago. Among metals-sector equities, shares of Barrick Gold Corp. (ABX 35.81, -1.84, -4.89%) fell 3.2% to $36.44, while South Africa's Gold Fields Ltd. (GFI 12.01, -0.77, -6.03%) traded down 3.7% at $12.30 and Newmont Mining Corp. (NEM 44.63, -2.81, -5.92%) lost 3.2% to $45.92. The Amex Gold Bugs Index (HUI 364.58, -21.63, -5.59%) , which tracks the share prices of major gold companies, dropped 3.4% to 373.87. The iShares Gold Trust ETF (IAU 94.03, -2.28, -2.37%) declined to $94.27, off 2.1%.

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