U.S. gold futures fell further after the U.S. August employment report was less dire than many analysts had predicted, traders said.

COMEX December gold futures GCZ0 were down $13.70, or 1.09 percent, at $1,239.70 an ounce on the COMEX division of NYMEX.

U.S. employment fell for a third straight month in August, but the decline was far less than expected and private payrolls growth surprised on the upside, easing pressure on the Federal Reserve to prop up growth. [ID:nN03273418] (Reporting by Carole Vaporean; Editing by John Picinich)