Precious metals fell on Friday as a monthly report showing the fewest U. S. job losses since September boosted the dollar and economic recovery hopes dented gold's safe-haven appeal.

Gold futures fell toward $950 an ounce on Friday, losing 2 percent on COMEX. The loss on MCX was less severe as Gold fell by only 0.46% .Silver futures fell to Rs. 23723 on MCX, Rs. 50 lower than the previous day closing.

Investment demand was largely absent, with holdings of the SPDR Gold Trust, the largest gold exchange-traded fund, dropped marginally to 1132.15 tonnes after hitting all time high during last week.

Open interest of COMEX gold futures rose above the 400,000 level, up 5,776 at 401,699 lots as of June 4, a sign that investment demand among funds and institutional investors are rising.

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.

Gold corrected sharply due to better than expected nonfarm payrolls report which triggered short covering in dollars and resulted in $25 sell off in Gold. We recommend selling precious metals on rise as stronger dollar might lead to further selling in precious metals.