Gold erratic after U.S. dollar extends gains

SINGAPORE, Dec 15 (Reuters) Gold gyrated on Friday after the dollar rose on stronger-than-expected U.S. data, reflecting a thin market ahead of the year-end.

-- Spot gold rose as high as $628.50 an ounce, hit a low of $624.60 and was at $625.60/627.10 an ounce by 0038 GMT, down slightly from $626.900/627.50 late in New York on Thursday.

-- Dealers said the focus remained on the currency and energy market, and any sharp move in the dollar and oil prices might stir the bullion market at a time when business was thin.

-- The euro hardly changed at $1.3140 .

-- In the latest data to show resilience in the economy, the U.S. government on Thursday said the number of people claiming initial unemployment benefits last week fell more sharply than economists had expected.

-- The data strengthened the view the Federal Reserve may not have to reduce interest rates just yet to stimulate the economy.

-- Benchmark gold futures on the Tokyo Commodity Exchange rose 2 yen per gram to 2,396 yen.

-- Platinum dropped to $1,104/1,109 an ounce from $1,108/1,118 late in New York.

-- Silver edged up to $13.77/13.82 an ounce from $13.76/13.83 an ounce in New York.

-- Palladium hardly changed at $326/331 an ounce.

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