* U.S. non-farm payrolls data beat expectations

* Prospect of further U.S. monetary easing recedes

* Gold, platinum come off highest since mid-November (Updates prices)

By Jan Harvey

LONDON, Feb 3 (Reuters) - Gold prices fell more than 1 percent on Friday, surrendering gains that earlier took them to 11-week highs, after better-than-expected U.S. payrolls data lifted the dollar and called into question the prospect of further U.S. quantitative easing.

Expectations that U.S. monetary policy will remain ultra-loose have boosted investors' appetite for bullion this year, lifting prices 11 percent since end-December.

Spot gold was at $1,736.75 an ounce at 1500 GMT, down 1.3 percent, after having earlier peaked at $1,762.90. U.S. gold  futures  for February delivery were down $18.50 an ounce at $1,740.80.

Data from the Labor Department showed the U.S. economy in January created jobs at the fastest pace in nine months, adding 243,000 positions, and the unemployment rate dropped to a near three-year low of 8.3 percent.

" I think people are asking some questions now with regards to the Fed's view about low interest rates into 2014," said Ole Hansen, vice president at Saxo Bank. " If job creation carries on at this pace, that could be revised, thereby removing some of the support for gold."

The tone of the report was further strengthened by revisions to November and December payrolls data, which showed 60,000 more jobs were created than previously reported.

The dollar rose to session highs against the euro after the payrolls report, while equity markets also rallied. Among other commodities, oil prices extended gains to rise more than $1 a barrel amid expectations for firm demand from the United States.

" Today's release is a very positive report and will soothe some of the deeper concerns at the Fed," said Camilla Sutton, chief currency strategist at Scotia Capital. " I think increasingly (QE3) is being pushed to the background."

FED PLEDGE

A U.S. Federal Reserve pledge last month to keep interest rates at rock-bottom levels and hints of another round of monetary easing, which would keep the dollar weak and the opportunity cost of holding bullion low, boosted gold.

Fed Chairman Ben Bernanke on Thursday defended the bank's policies against charges from Republican lawmakers they risked sparking inflation, saying the economy still needs plenty of support.

" Yesterday's reaffirmation from the U.S. Fed (chairman) that he is committed to keep rates low ... (gave) gold the necessary boost to hold gains and also break key resistance," Richcomm Global Services senior analyst Pradeep Unni said.

Among other precious metals, silver was down 1.6 percent at $33.72 an ounce. Its ratio to gold, the number of silver ounces needed to buy an ounce of gold, eased back to 51.3 from a high of 57.4 hit in December.

Silver was the best performing of the major precious metals last month, rising more than 20 percent. Silver coin sales under the U.S. Mint's American Eagle programme totalled 6.107 million ounces in January, their highest in a year.

Spot platinum was down 0.6 percent at $1,617.24 an ounce, while spot palladium was down 0.1 percent at $704.75 an ounce. Platinum earlier hit its highest since Nov. 16 at $1,632.50.

Platinum prices are up 15.9 percent this year, supported by concerns over output of the metal from major producer South Africa. Natixis said it expects output growth to slow from its estimate of a 6 percent increase in 2011.

" South African producers are suffering from high costs due to lower ore concentration, leading to deeper drilling, and an increase in energy costs," it said.

" For 2012 we expect output to grow by around 3 percent to 206 tonnes as investment in South Africa and Zimbabwe become operational." (Editing by Keiron Henderson and Jane Baird) 

* Gold holds near highest since Dec. 8

* U.S. jobs data helps risk appetite, lifting stocks

* Platinum prices near 2-1/2 month high (Updates prices, adds comment)

By Jan Harvey

LONDON, Feb 2 (Reuters) - Gold prices rose on Thursday, approaching their earlier eight-week peak above $1,750 an ounce, as a larger than expected fall in new U.S. claims for unemployment benefit lifted stock markets and helped pull the dollar off highs versus the euro.

The precious metal has risen nearly 12 percent this year, supported by the Federal Reserve's announcement that it would hold U.S. interest rates at rock bottom for an extended period. The move is set to keep the dollar under pressure and the opportunity cost of holding non-interest bearing bullion low.

Spot gold was up 0.2 percent at $1,747.00 an ounce at 1440 GMT, while U.S. gold  futures  for February delivery rose $1 an ounce to $1,750.50. Gold earlier peaked at $1,753.20, its highest since Dec. 8.

" Gold's fundamentals are strong and the recent rebound in risk appetite has encouraged investors to come back to the market or add to their existing positions," said Anne-Laure Tremblay, an analyst at BNP Paribas.

" Anecdotal evidence suggests that bar and coin demand remains high in the U.S. and Europe, with physical gold being bought as a safe haven," she added. " We expect gold to reach new highs in 2012, although episodes of extreme risk aversion may trigger corrections along the way."

Stock markets rose after data showed new claims for U.S. unemployment benefits fell last week, pointing to a further recovery in the battered jobs market.

European shares and the euro bounced around in choppy trading on Thursday as investors weighed concerns about efforts to reach a deal to bailout  Greece  with optimism over signs of fragile economic growth.

Worries over the  euro zone  debt crisis had driven gold sharply higher for much of last year even as they weighed on the euro. Towards the end of the year, however, the metal behaved more like a commodity, tracking equities lower as risk appetite retreated and suffering from strength in the dollar.

Underlying confidence in its ability to push higher in a low interest rate environment has allowed it to rise this year even in times when other assets are under pressure.

" While gold's 20-day rolling correlation with risk has jumped back into positive territory, the level continues to hover near the lower end of the range," said UBS in a note.

" Gold appears in the process of convincing investors that its stint as a hybrid between a safe haven and a risk asset is coming to an end. The next test would be if we get any negative surprises out of Europe."

PLATINUM HOLDS NEAR 2-1/2 MONTH HIGH

On the physical markets, demand by the world's biggest gold consumer, India, edged higher as strength in the rupee made the precious metal cheaper for local buyers. The wedding season is underway in India and will last until May.

The biggest global producer of gold,  China, said its production of the metal rose to a record 360.95 tonnes last year. Its domestic demand far outstripped that figure, however.

Silver was up 0.1 percent at $33.73 an ounce. Spot platinum was up 0.4 percent at $1,618.49 an ounce, while spot palladium was up 0.4 percent at $696.75 an ounce.

Platinum has outperformed gold so far this year, rising nearly 16 percent since end December. As well as benefiting from rising appetite for commodities, the metal has taken support from expectations that South African production could be disrupted this year by mine stoppages.

Price-positive news also filtered through from the demand side of the market. Most platinum and palladium is consumed by the car industry for use in catalytic converters.

" Platinum and palladium benefited yesterday from better than expected vehicle sales figures in the United States," said Commerzbank in a note.

" On an annualised and seasonally adjusted basis 14.13 million vehicles were sold in January, almost 12 percent more than in the previous year." (Reporting by Jan Harvey editing by William Hardy)