Gold plummets by 3% as U.S. jobs report sparks massive selloff
Published Jul 05, 2013 11:56AM ET
Stimulus measures such as the Fed's monthly USD85 billion bond-buying program weaken the dollar and send gold rising as a hedge, and talk of their dismantling has a reverse effect.
Gold has been hit especially hard in recent weeks on sentiments that ultra-loose monetary policies across the globe over the last several years are coming to an end and will exacerbate the end of a bull market spanning for over a decade.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 3.11% at USD1,212.95 a troy ounce in U.S. trading on Friday, up from a session low of USD1,207.25 and down from a high of USD1,249.75 a troy ounce.
Gold futures were likely to find support at USD1,180.35 a troy ounce, the low from June 28, and resistance at USD1,249.75, the earlier high.
The Bureau of Labor Statistics reported earlier the U.S. economy added 195,000 nonfarm payrolls in June, well above analysts' calls for a 165,000 increase.
May's figures was revised upwards to 195,000 jobs from 175,000, while April's figure was revised upwards to 199,000 from 149,000.
The headline unemployment rate remained unchanged at 7.6% last month, while hour earnings rose 0.4% compared to market calls for a 0.2%.
The numbers sent the dollar gaining by fueling sentiments monetary stimulus measures are on their way out by next year.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.81% at 84.63.
Elsewhere on the Comex, silver for September delivery was down 4.98% at USD18.718 a troy ounce, while copper for September delivery was down 3.55% and trading at USD3.062 a pound.
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Written By: Investing.com
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