Gold prices surged over two per cent on Friday as the prospect of a third round of stimulus was bolstered by a weaker than expected US jobs report.

Bullion for December delivery gained $34.90 to settle at $1,740.50 an ounce on the Comex division of the New York Mercantile Exchange, the highest settlement in over six months.

Figures from the Labor Department showed US employers added fewer than expected jobs in August. Nonfarm payrolls rose by 96,000, missing market estimates of around 125,000. It also came in well below July's figure of 141,000. The report also showed the unemployment rate fell to 8.1%.

The dire jobs data opens the door even further to the Federal Reserve announcing new policy measures at its upcoming policy meeting.

Among other precious metals silver for December delivery surged $1.014 to settle at $33.633 an ounce while palladium for December delivery rose $7 to $654.75 an ounce.

Crude oil futures overcame earlier weakness on Friday to register mild gains as focus turned to the possibility of more stimulus measures in the wake of the gloomy jobs data.

Crude for October delivery climbed 89 cents to close at $96.42 a barrel on the New York Mercantile Exchange.

Oil futures had been given a boost on Thursday after the European Central Bank's Mario Draghi outlined plans to buy unlimited bonds in a bid to relieve pressure on Eurozone nations struggling with debt. For the week, oil prices were little changed.


CJ

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