Gold turned lower Thursday following stronger than expected US jobs data that had investors exiting safe havens for riskier climes like equity markets.

The December contract fell $6.60 at $1,250.90 an ounce in New York, though that was off its worst levels as concerns about European banks simmered away.

First-time unemployment claims fell by 27,000 to 451,000 in the week ended September 4, much lower than the decline to 470,000 penciled in by economists.

Meanwhile, the US trade gap shrank by 14% to $42.8bn in July, according to the Commerce Department, as imports decreased and exports increased. Experts had predicted a $47.3bn shortfall compared with June's $49.8bn.

Elsewhere, silver, copper, palladium and platinum all tracked lower.

On the oil markets, crude dropped 42 cents to $74.25 a barrel, although the jobs report had sent prices up towards $76 earlier.

Weekly data from the Energy Information Administration showed oil supplies fell 1.9m barrels last week, way less than some estimates, but more than others.

There were also reports that Deutsche Bank may be looking to raise €9bn in a stock sale, pressuring both energy markets and equities.

Related share prices