* U.S. jobs data disappoints
* N. Korea, U.S. turmoil supports safe-haven demand
* Gold touches highest since Nov. 9
* Set for weekly increase of 2.3 percent
* Silver on track for 3 pct weekly gain
(Updates with U.S. jobs data) LONDON, Sept 1 (Reuters) - Gold touched a 9-1/2-month high on Friday after data showed U.S. job growth slowed more than expected in August, but reversed gains when investors judged that the figures were unlikely to change the outlook for U.S. interest rate rises.
Spot gold was down 0.1 percent at $1,320.34 an ounce
at 1359 GMT after reaching $1,328.80, the highest since Nov. 9. It was still set for a weekly gain of 2.3 percent.
U.S. gold futures were 0.3 percent higher at
$1,325.70. The U.S. Labor Department said nonfarm payrolls increased by 156,000 last month and average hourly earnings rose three cents or 0.1 percent. The figures missed economists' forecasts but analysts were divided on how they would affect Federal Reserve policy on interest rate rises. Gold is sensitive to interest rates because higher rates raise bond yields, making non-yielding bullion less attractive, and tend to boost the dollar, in which gold is priced. The dollar and bond yields weakened sharply following the jobs data but recouped losses. Gold is still likely to rise further after prices increased January, said Mitsubishi analyst Jonathan Butler. "The technical uptrend is well established, there is continuing uncertainty over North Korea's nuclear ambitions and an imminent wrangle between Congress and the White House over the debt ceiling that must be solved by late September to avoid technical default," he said. Brinkmanship over debt negotiations could easily tip over into loss of market confidence in the U.S. dollar, Butler said, supporting gold by making it cheaper for holders of other currencies. Adding to geopolitical concerns, the United States on Thursday told Russia to close a consulate, worsening a diplomatic spat. On the technical side, Fibonacci support for gold was at $1,297.50, said analysts at ScotiaMocatta. But gold had upward momentum and is likely to rise through resistance at $1,326.20 towards $1,350, they said. Butler said that a continued push higher could see gold reach last year's peak of $1,374.91. "The breakout pattern now evident on the charts will likely gain further traction, drawing in more quant-based funds," said INTL FCStone analyst Edward Meir.
Silver was flat at $17.57 an ounce and was on track
for a weekly gain of 3 percent.
Platinum was up 0.3 percent to $998.40 and palladium
was 1.2 percent higher at $944.70.
(Additional reporting by Arpan Varghese in Bengaluru; Editing