Gold rises as Fed warns on US jobs

Gold rose on Friday after the Federal Reserve chairman said it was critical to reduce US unemployment, which encouraged some safe-haven bullion buying after days of liquidation pushed gold down sharply from record highs last week. Gold fell briefly after Fed Chairman Ben Bernanke did not provide details on steps the Fed could take. But bullion rose as investors focused on the Fed's pessimistic economic outlook and focus on spurring economic growth. US gold futures for December delivery were up $22.20 an ounce at $1,784.50. But gold was still set for its first weekly loss in eight weeks after days of profit-taking on its surge to record highs at $1,911.46 on Tuesday. Prices slid more than $200 from that level by Thursday in volatile trading. Treasuries rallied initially on Bernanke's news that the Federal Open Market Committee would extend its September meeting to two days from one to discuss options for stimulus. A stimulus programme could involve buying longer-dated Treasuries. But some traders later sold long bonds, since no definite plans were announced. "I think that seeing Treasuries come off a little bit here, you're seeing some bets being unwound in the market," said Rich Bryant, a Treasury trader at MF Global Securities. "There were some bets in the market that there was an outside chance that something more concrete could be announced today," he said.