(Adds comment, reaction to US jobs report, updates prices)
* Gold hits 3-month high then pulls back after jobs report
* Receding U.S. rate rise view has spurred gold bulls
* Silver on course for best week since May 2015
By Susan Fenton
LONDON, Feb 5 (Reuters) - The price of gold slipped after a
mixed U.S. jobs report on Friday, but was still on track for its
biggest weekly gain in a month on doubts about whether the
Federal Reserve can keep raising interest rates.
U.S. non-farm payrolls increased by 151,000 in January, well
below a Reuters poll forecast for a rise of 190,000 and down
from 292,000 in December, but hourly wages surged and the U.S.
unemployment rate fell to an eight-year low, suggesting the
labour market recovery remains on track.
Spot gold XAU= initially rose after the jobs report to
$1,161.31 an ounce, its highest since Oct. 29, but by 1401 GMT
it was down 0.5 percent at $1,149.86 an ounce.
The price has advanced nearly 4 percent so far this week as
investors turned doubtful that the U.S. will raise rates this
year after a top Fed official, William Dudley, said there was a
need to consider the weakening global outlook in framing U.S.
monetary policy.
But analysts said some traders may have trimmed positions in
gold slightly after the jobs report as the strength of U.S. wage
growth and the drop in the unemployment rate may have revived
the prospect of some hikes this year.
As a non-interest bearing asset, dollar-denominated gold
becomes less attractive if U.S. interest rates rise.
"Gold is still a lot above where it was at the beginning of
the week and it still looks less likely that the U.S. will go
ahead with a rate hike in the next few months so that is
positive for gold," said Simona Gambarini, an analyst at Capital
Economics.
A shaky global economy has lifted buying interest in gold,
making it among the best performing assets since the start of
2016 with a gain of more than 9 percent.
Other precious metals rose on the back of gold's rally, with
silver and platinum also at multi-month highs. Silver is on
track for its best week since May last year.
U.S. gold for April delivery GCcv1 was down 0.6 percent at
$1,150.20 an ounce.
"We see no compelling reason for more than a normal
retracement before bullion resumes an upward move," HSBC analyst
James Steel said in a note, adding gold was underpinned by
risk-off sentiment and a shift in global monetary policy.
Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose to 22.3 million ounces on
Thursday, the highest since late October. GOL/ETF
Spot silver XAG= was down 0.8 percent at $14.75 an ounce,
but not far from Thursday's three-month high of $14.91 and has
gained more than 3 percent this week.
Platinum XPT= was down 1.2 percent at $896.96 an ounce,
while palladium XPD= was down 0.6 percent at $508.73, after
earlier hitting a one-month high at $518.14.