PRECIOUS-Gold retreats as positive U.S. jobs data boosts dollar

* Gold down 1.8% this week, silver 3%
* Nonfarm payrolls rises in August; unemployment rate dips
* Platinum on track for biggest weekly decline since June
* Dollar heads for its strongest week since mid May
* Interactive graphic tracking global spread of the
coronavirus: https://tmsnrt.rs/3aIRuz7
in an external browser

(Updates prices)
By Diptendu Lahiri
Sept 4 (Reuters) - Gold fell on Friday, reversing course as
better-than-expected U.S. employment data bolstered the dollar,
putting bullion on course for a weekly decline of 1.8%.
Platinum was on track for its biggest weekly decline since
June, dragged down by bullion.
Spot gold XAU= erased early gains to fall 0.2% to
$1,927.04 per ounce by 1:51 p.m. EDT (1751 GMT).
U.S. gold futures GCv1 settled down 0.2% to $1,934.30 per
ounce.
"Gold's correlation with the dollar has been elevated,
especially over the past couple of weeks and bullion is being
weighed down by the bounce in the greenback following the solid
report, especially the unemployment rate," said Tai Wong, head
of base and precious metals derivatives trading at BMO.
The dollar index .DXY was up 0.1%, putting it on track for
its best week since mid May and making the metal expensive for
holders of other currencies. USD/
Data showed nonfarm payrolls increased by 1.371 million jobs
in August. The unemployment rate fell to 8.4% from 10.2% in
July. "However, this data does not change the U.S. Federal
Reserve's stand on more stimulus to be pumped into the economy
and its take on tolerating a higher inflation rate, keeping gold
supported in the long run," said Michael Matousek, head trader
at U.S. Global Investors.
The metal has gained 27% so far, helped by near-zero
interest rates globally and easy monetary policy, especially
from the Fed, and safe-haven demand driven by a clouded economic
picture due to the coronavirus pandemic.
"This restive $1,900-$2,000 range should resolve ultimately
higher especially with the Fed now officially elevating
employment over inflation in the medium term. The practically
permanent highly accommodative policy and intense election
uncertainty will severely limit the attractiveness of USD,"
BMO's Wong said.
Platinum XPT= rose 0.9% to $897.61 an ounce but was on
track for its biggest weekly decline since mid-June, down 3.4%.
Gold's failure to break above $2,000 and subsequent decline
this week triggered a sharp retreat in platinum, sometimes
dubbed "poor man's gold," Wong said.
Silver XAG= fell 0.2% to $26.57 an ounce and has shed 3%
over the week, while palladium XPD= rose 1.7% to $2,324.77.