Gold takes a breather

London - Gold eased back towards $1,200 an ounce in Europe on Friday as traders cashed in gains after the previous day's run-up to record highs, with the market taking a breather ahead of key U.S. payrolls data later in the day.

Economists polled by Reuters forecast the U.S. economy lost 130,000 jobs in November, compared to 190,000 in October. If the data beats or misses expectations, it could have a significant impact on the dollar, and consequently on gold.

Spot gold was bid at $1,203.55 an ounce at 1027 GMT, against $1,207.10 late in New York on Thursday. U.S. gold futures for February delivery on the COMEX division of the New York Mercantile Exchange fell $12.70 to $1,204.70.

Spot prices struck a record high at $1,226.10 an ounce on Thursday amid expectations for persistent weakness in the dollar and rising inflation in 2010.

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Among other precious metals.

Silver was bid at $18.78 an ounce against $18.80. The world's largest silver ETF, the iShares Silver Trust, said its holdings rose 113.05 tonnes to a record 9,514.35 tonnes on Thursday.

Platinum was at $1,477.50 an ounce against $1,480.50.

Palladium was at $378.50 against $380.50.

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Copper falls ahead of U.S. jobs data

LONDON - Copper eased on Friday, drifting away from near 15-month highs hit earlier in the week, as inventories rose and investors cautiously awaited key U.S. jobs numbers from the world's largest economy.

By 1056 GMT, copper for three-month delivery on the London Metal Exchange fell to $7,039.75 (U.S.) a tonne from $7,080 at the close on Thursday. Used in power and construction, copper hit an almost 15-month high at $7,170 on Wednesday.

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Among other industrial metals.

Aluminum fell $6 to $2,128. LME stocks for the metal, used in transport and packaging, rose 1,025 tonnes to remain near record highs above 4.5 million tonnes.

Steel making ingredient nickel traded at $15,925 from $16,005.

While battery material lead was at $2,366 from $2,409.

Zinc traded at $2,371.25 a tonne from $2,410.

Tin was at $15,160 from $15,175.

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