Saturday, December 05, 2009
LONDON: Gold slid below $1,180 a troy ounce on Friday as the dollar rose on a stronger than expected US employment report that raised sentiment on growth and dented gold as a currency hedge.
Spot gold fell 2.6 per cent to $1,174.70 a troy ounce and was bid at $1,178.50 an ounce at 1601 GMT compared with $1,207.10 late in New York on Thursday.
US gold futures for February delivery on the COMEX division of the New York Mercantile Exchange fell more than $40 to $1,177 an ounce.
US employers cut a far fewer-than-expected 11,000 jobs in November, the smallest decline since the start of the recession in December 2007, strongly suggesting the deterioration in the labor market was in its final stages. That boosted the dollar against the euro and yen.
“Gold has been hit quite badly after the dollar strengthened on the non-farm payrolls data, counter to what you would normally expect,” said Dan Smith, analyst at Standard Chartered.
Spot prices struck a record high at $1,226.10 an ounce on Thursday amid expectations for persistent weakness in the dollar and rising inflation in 2010.
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