Investing.com - Gold prices dropped on Monday, extending Friday's losses into a new week as uncertainty surrounding Europe's future coupled with optimism brimming over from recent U.S. jobs data fueled more demand for dollars and less for gold.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,610.45 a troy ounce, down 0.39%.
Gold futures were likely to test support at USD1,594.05 a troy ounce, Wednesday's low, and resistance at USD1,632.15, Friday's high.
In the U.S. on Friday, the Bureau of Labor Statistics reported that the economy added a net 200,000 nonfarm payrolls in December, well above forecasts for a 150,000 gain.
The news sparked demand for the dollar, a traditional hedge to gold, and the trend carried over to early Monday trading in Asia.
Furthermore, markets are turning to their attention to Europe, as French President Nicolas Sarkozy and German Chancellor Angela Merkel are set to meet Jan. 9 to find ways to make good on a December pledge among E.U. nations to better coordinate fiscal policies.
European uncertainty has sent more and more investors fleeing to the safety of the greenback in recent sessions, a trend that often sends gold falling.
Elsewhere on the Comex, silver for March delivery rose 0.48% to trade at USD28.82 a troy ounce, while copper for March delivery traded down 0.13% to trade at USD3.43 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,610.45 a troy ounce, down 0.39%.
Gold futures were likely to test support at USD1,594.05 a troy ounce, Wednesday's low, and resistance at USD1,632.15, Friday's high.
In the U.S. on Friday, the Bureau of Labor Statistics reported that the economy added a net 200,000 nonfarm payrolls in December, well above forecasts for a 150,000 gain.
The news sparked demand for the dollar, a traditional hedge to gold, and the trend carried over to early Monday trading in Asia.
Furthermore, markets are turning to their attention to Europe, as French President Nicolas Sarkozy and German Chancellor Angela Merkel are set to meet Jan. 9 to find ways to make good on a December pledge among E.U. nations to better coordinate fiscal policies.
European uncertainty has sent more and more investors fleeing to the safety of the greenback in recent sessions, a trend that often sends gold falling.
Elsewhere on the Comex, silver for March delivery rose 0.48% to trade at USD28.82 a troy ounce, while copper for March delivery traded down 0.13% to trade at USD3.43 a pound.