CHICAGO, June 3 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as the U.S. dollar index rose.

       The most active gold contract for August delivery fell 21.2 U.S. dollars, or 1.13 percent, to close at 1,850.2 dollars per ounce.

       This is the biggest daily drop of gold in about three weeks.

       The U.S. Labor Department reported Friday that U.S. nonfarm payrolls increased by 390,000 in May, higher than the 328,000 Dow Jones estimate. The unemployment rate was unchanged at 3.6 percent.

       Stronger-than-expected rise in U.S. nonfarm payrolls has reinforced market expectation for higher interest rates from the Federal Reserve in coming months, boosting the dollar.

       Addressing a virtual event hosted by Philadelphia Council for Business Economics Thursday, Federal Reserve Bank of Cleveland President Loretta Mester said she does not support a pause in interest rate hike in September, and cautioned that pace of rate hikes could speed up or slow down from September based on what happens with inflation.

       Silver for July delivery fell 36.7 cents, or 1.65 percent, to close at 21.908 dollars per ounce. Platinum for July delivery fell 12 dollars, or 1.17 percent, to close at 1,016.4 dollars per ounce.