NEW YORK, Aug 31: COMEX gold settled lower on Friday after a brief bout of profit-taking knocked if off its earlier perch, and traders said some players with new long positions feared holding that risk over a three-day weekend.

US financial markets will be closed on Monday for US Labour Day, marking an unofficial end to summer.

Some traders said many desks were already thinned out Friday and those who were left were thinking about the early close and their weekend plans.

There was probably too little volume to put any conclusions on it. I think most people are already out the door, said one gold dealer.

COMEX December gold finished 50 cents weaker at $313.90 an ounce after spending the day between $313.30 and $316.00.

COMEX estimated final gold volume at 9,000 contracts.

Spot gold was slightly lower at $312.50/3.0 from Thursday’s close at $312.90/3.4. The London afternoon fix was $312.80.

The mixed bag of US economic data released Friday told a story of either standing still or slight improvement over the current growth scenario.

In particular, gold traders focused on August’s better-than-expected Chicago PMI. A regional manufacturing gauge, the PMI rose to 54.9 from 51.5 in July.

Traders said gold players took the August reading as an indication that US economic activity is picking up, and the need for buying safe-haven assets like gold is dissipating.

Newly-active COMEX December silver took a nose dive Friday to end 8.9 cents lower at $4.468 an ounce after trading from $4.455 to $4.59.

Silver volume was estimated at 12,000 lots.

Delivery notices for spot September silver began Friday. COMEX reported 2,794 silver issuers and stoppers.

Spot silver was quoted at $4.45/47 late in Friday’s session, well off $4.54/56 at Thursday’s close. Silver was fixed Friday at $4.565.

On the NYMEX, palladium profit-takers got started early and took prices down. December closed $13.80 lower at $326.80 an ounce.—Reuters