Business | Markets
Gold edges down as US payroll data released
Gold edged lower on Friday as the dollar strengthened against the euro in the wake of US December non-farm payrolls numbers, but reaction to the data was muted as it came in broadly in line with expectations.
- Reuters
- Published: 23:47 January 9, 2009
London: Gold edged lower on Friday as the dollar strengthened against the euro in the wake of US December non-farm payrolls numbers, but reaction to the data was muted as it came in broadly in line with expectations.
Spot gold slipped to $850.65/852.65 an ounce at 1415 GMT from $856.10 late in New York on Thursday.
US gold futures for February delivery on the COMEX division of the New York Mercantile Exchange fell $2.80 to $851.70.
A government report showed US employers slashed payrolls by 524,000 in December, driving the unemployment rate to its highest level in nearly 16 years. Analysts polled by Reuters had expected a reduction of 550,000 jobs in December.
"The non-farm payrolls were only a few thousand off consensus, so that took some of the surprise away from the market," said BNP Paribas metals analyst Michael Widmer.
Gold is taking its cues predominantly from the currency markets. The dollar turned higher against the euro in choppy trading after the data, with the single currency hitting a session low of $1.3588. A stronger dollar tends to favour gold.
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