Metals

Gold at 11-week low after US data, set for 3rd weekly fall

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Gold hit an 11-week low on Friday, heading for a third straight weekly slide, as the dollar extended its gains after better-than-expected U.S. employment data bolstered prospects for an interest rate increase this year.

Non-farm payrolls increased 280,000 last month, the largest gain since December, above the 225,000 that economists polled by Reuters had expected.

Read More Nonfarm payrolls total 280,000; unemployment rate at 5.5%

Spot gold fell as much as 1.1 percent to its lowest since March 19 at $1,162.35 an ounce and was down 0.7 percent at $1,167 an ounce. The metal was heading for a near 2 percent weekly fall, the biggest since April 24.

Jobs numbers out on Friday
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Jobs numbers out on Friday

"The U.S. data triggered a break below important support levels of $1,175 and $1,170," ActivTrades chief analyst Carlo Alberto de Casa said.

"The break lower caused the metal to exit that $1,170-$1,220 trading range in which it had been confined for many weeks, making it more vulnerable to further declines towards $1,150 and $1,131."

The dollar rose 1.1 percent versus a basket of currencies after the non-farm payrolls data, seen as a key barometer of the U.S. economy. Sluggish growth in the first quarter had left markets doubting whether the Fed would raise rates this year.

But strong data throughout the week put the Fed back on track to increase rates as soon as September.

Read MoreI'm shorting gold—here's why: Trader

A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies, while higher interest rates would hit demand for the non-interest-paying metal.

The Fed has kept rates near zero since December 2008.

Investors were also keeping an eye on Greece after it delayed a debt payment to the International Monetary Fund due on Friday.

The delay came as German Chancellor Angela Merkel said talks on a cash-for-reforms deal were still far from reaching an agreement. Greek Prime Minister Alexis Tsipras demanded changes to tough terms from international creditors for aid to stave off default.

Read MoreWhy is '#Zambia' trending in Greece?

Trading in physical markets was bleak despite the lower prices. A tight price range and expectations of more declines, in a seasonally quiet period for bullion, kept consumers away from gold jewelry, bars and coins.

Premiums in major trading centers across Asia, the top consuming region, have barely moved in the past few weeks.

Spot platinum fell 0.8 percent to $1,087.05 an ounce. Silver fell 0.4 percent to $16 an ounce, while palladium edged 0.8 percent lower to $745.97 an ounce.