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Gold falls as dollar gains on weak U.S. jobs report

Published 07/06/2012, 11:40 AM
Updated 07/06/2012, 11:41 AM
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Investing.com - Gold prices were off in choppy U.S. trading Friday after worse-than-expected jobs numbers sent investors stocking up on the precious metal's traditional hedge, the dollar, as a safety play.
 
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded down 1.46% at USD1,585.95 a troy ounce.
 
Gold hit a low of USD1,584.55 a troy ounce and a high of USD1,609.85 a troy ounce early during the session.
 
Gold futures were likely to test support at USD1,551.35 a troy ounce, the low from June 29, and resistance at USD1,624.05, the high from July 5.
 
Earlier Friday, the U.S. Bureau of Labor Statistics reported the economy added a net 80,000 nonfarm payrolls in June, below market forecasts for a gain of around 90,000.
 
April figures were revised to 68,000 from 77,000 nonfarm payrolls, while May's numbers were  revised to 77,000 from 69,000.
 
The news sent gold falling as investors sought refuge in safe and liquid dollar positions.
 
International Monetary Fund Managing Director Christine Lagarde, meanwhile, said the fund would likely cut its global growth forecasts, which further fueled demand for dollars.
 
Also in the U.S., weak service-sector activity further stoked the risk-off trading mood.

The Institute of Supply Management's non-manufacturing purchasing managers' index fell to 52.1 in June from 53.7 in May.
 
Markets were predicting a 53.0 reading.
 
Elsewhere on the Comex, silver for September delivery was down 2.18% and trading at USD28.070 a troy ounce, while copper for September delivery was down 2.22% and trading at USD3.416 a pound.






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