NEW YORK, Nov 8: COMEX gold ended higher on Friday, rescued by short covering in rumor-filled trade after safe-havens fell on the best evidence yet that the US economic recovery had caught up to the labor market.

December gold ended up $2.70 at $383.40 an ounce. It traded from a morning low of $376.50 to $384.00. Estimated volume was a brisk 59,000 contracts.

Spot gold was last at $382.75/3.50, up from the close at $379.95/0.70. London’s afternoon fix was at $378.95.

Gold fell at the open as the dollar surged on US Labor Department data showing nonfarm payrolls surged 126,000 in October, more than double the 58,000 increase expected by Wall Street. The unemployment rate fell to 6.0 per cent from 6.1 per cent in September.

Those moves were reversed late morning and the market swirled with various rumors and talk — denied by the Department of Homeland Security — that the US terror threat level might have been raised

It was clearly all dollar-driven, and the economic numbers, said Robert Gottlieb, bullion dealing chief at HSBC. The whole market was positioned for a much stronger dollar.

Obviously helping propel (gold) were rumors of the terror alert and hijacking, he continued.

The euro fell to $1.1377 in the morning, its lowest since Sept. 19, before snapping back to $1.1518/22 by late trade.—Reuters