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Gold dips as market digests U.S. jobs data

Published 03/11/2012, 08:27 PM
Updated 03/11/2012, 08:29 PM
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Investing.com - Gold prices crept down in Asian trading Monday although steady after dropping last week on reports that U.S. unemployment rates came in better than expected in February, which sent gold's traditional hedge, the dollar, rising.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded down 0.05% at USD1,710.65 a troy ounce.

Gold futures were likely to test technical support at USD1,706.59 a troy ounce and resistance at USD1,721.59.

The U.S. Bureau of Labor Statistics on Friday reported the world's largest economy added a net 227,000 nonfarm payrolls in February, outpacing expectations for a gain of 215,000.

Meanwhile, the government revised January's figures up to 284,000 from 243,000.

The news initially sent the dollar soaring on growing sentiment that the Federal Reserve will hold off on any plans to roll out a third round of quantitative easing, which are asset purchases from banks designed to stimulate the economy, with a weaker greenback being the tradeoff for price stability and lower unemployment rates.

Gold later regained its composure and kept it in early Monday trading in Asia as the market sought to put U.S. jobs data behind it and look elsewhere for guidance.

Elsewhere on the Comex, silver for May delivery was up 0.14% and trading at USD34.260 a troy ounce, while copper for May delivery was up 0.21% and trading at USD3.859 a pound.





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