* Investors take profits after best quarter in 30 years
* U.S. economy added 215,000 jobs last month -data
* Equities fall as markets mull Fed policy
* GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC
(Releads, updates prices, adds comment)
By Jan Harvey
LONDON, April 1 (Reuters) - Gold fell more than 1 percent on
Friday after U.S. payrolls data for March beat expectations,
allaying some fears over the health of the U.S. economy and
stoking speculation that the Federal Reserve may press ahead
with interest rate hikes this year.
U.S. employers added 215,000 jobs in March, the report
showed, against expectations for 205,000. U.S. interest rate
futures suggested traders are now betting the Fed will next
raise rates as soon as November, versus December ahead of the
report.
Spot gold XAU= was down 1.4 percent at $1,214.66 an ounce
at 1330 GMT, having earlier touched a low of $1,213.10, while
U.S. gold futures GCv1 for June delivery were down $18.90 an
ounce at $1,216.50.
The metal saw its biggest quarterly rise in nearly 30 years
in the three months to March, rallying more than 16 percent as
expectations faded that the Fed would move to normalise interest
rates after their first increase in nearly a decade in December.
"Generally this was a positive report, and therefore gold
has now broken down," Societe Generale (PA:SOGN) analyst Robin Bhar said.
"It has been enough to see a bit of liquidation, maybe an excuse
to take some profits given that we had a fantastic run-up in the
first quarter."
"The debate carries on -- does this actually clear up the
question of whether the Fed increases or not this year? I don't
think it does."
Gold had risen as much as 2 percent earlier this week after
Fed Chair Janet Yellen said the U.S. central bank should proceed
only cautiously with further interest rate increases.
The metal is sensitive to moves in U.S. rates, as a rise
would lift the opportunity cost of holding non-yielding assets
such as bullion, while boosting the dollar.
"I don't think the market has to fear big interest rate
hikes in 2016 from the Fed," LBBW analyst Thorsten Proettel
said. "Overall monetary policy will be very supportive for
gold."
European stocks fell and U.S. stocks opened lower after the
data, seen as a sign of economic resilience that could allow the
Federal Reserve to gradually raise rates this year. .EU .N
Physical gold demand in the major Asian markets of China and
India has been soft this week due to rising prices, traders
said. India's gold demand in the March quarter is set to drop by
about two-thirds from a year ago to its lowest in seven years.
GOL/AS
Silver XAG= was down 3.2 percent at $14.88 an ounce, while
platinum XPT= was down 2.3 percent at $949.50 an ounce and
palladium XPD= was down 0.8 percent at $557.75 an ounce.
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GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC
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