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Gold dips as U.S. jobs numbers come in better than expected

Published 05/03/2013, 12:34 PM
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Investing.com - Gold prices edged lower on Friday after the U.S. government revealed its economy added more jobs than expected in April.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 0.09% at USD1,466.25 a troy ounce in U.S. trading on Friday, up from a session low of USD1,457.35 and down from a high of USD1,487.15 a troy ounce.

Gold futures were likely to test support USD1,4393.75 a troy ounce, Wednesday's low, and resistance at USD1,487.15, the earlier high.

The Bureau of Labor Statistics reported earlier that the U.S. economy picked up 165,000 nonfarm payrolls in April, up from 138,000 in March, whose figure was revised up from 88,000.

April's figures far outpaced analysts' forecasts for a 145,000 figure.

The numbers allayed recent concerns that the U.S. economy may be hitting a soft patch and prompt the Federal Reserve to keep stimulus programs in place longer than once anticipated.

Monetary stimulus tools, especially the Fed's USD85 billion monthly bond-buying program, tend to weaken the dollar to spur recovery.

Gold and the dollar tend to trade inversely from one another.

Also depressing gold prices, February's figures were revised to 332,000 from 268,000.

The headline unemployment rate ticked down to 7.5% in April from 7.6% in March.

Elsewhere, the Institute for Supply Management reported that its April non-manufacturing index fell to 53.1 in April from 54.4 in March, missing market calls for a 54.0 reading, the slowest pace of expansion since July of last year.

A reading over 50 indicates expansion.

Talk of rising physical demand in Asia and a recent European Central Bank rate cut supported gold and curbed the yellow metal's losses.

Elsewhere on the Comex, silver for July delivery was up 0.65% at USD23.985 a troy ounce, while copper for July delivery was up 6.26% and trading at USD3.299 a pound.









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