Gold Slides After Strong Jobs Report -- Update
Gold prices dropped near a four-month low on Friday after U.S. jobs data showed better-than-expected growth.
Gold for August delivery was recently down 0.6% at $1,216.40 a troy ounce on the Comex division of the New York Mercantile Exchange, trading at the lowest level since March 15.
On Friday, the Labor Department said the U.S. economy added 222,000 jobs in June, beating economists' expectations of 174,000. Jobs reported in May and April were also raised, signaling strong job growth and healthy economic conditions.
Gold swung between gains and losses following the report, as investors weighed the positive jobs number against lackluster wage growth and signs of higher unemployment.
Gold is "still in a defensive mode. The bears are in control," said Bob Haberkorn, senior market strategist at RJO Futures. "You need an event to push it higher."
The precious metal has sold off in recent weeks as the Federal Reserve has raised interest rates and laid out plans for tighter monetary policy. Gold pays its holders nothing, and struggles to compete with yield-bearing assets when borrowing costs rise.
The WSJ Dollar Index was recently up 0.2% to 88.35, making dollar-denominated metals such as gold and copper more expensive to foreign buyers.
Meanwhile, copper for September delivery fell 0.3% to $2.6530 a pound in New York.
Write to Stephanie Yang at stephanie.yang@wsj.com
Gold prices dropped near a four-month low on Friday after U.S. jobs data showed better-than-expected growth.
Gold for August delivery settled down 1.1% at $1,209.70 a troy ounce on the Comex division of the New York Mercantile Exchange, closing at the lowest level since March 15.
On Friday, the Labor Department said the U.S. economy added 222,000 jobs in June, beating economists' expectations of 174,000. Jobs reported in May and April were also raised, signaling strong job growth and healthy economic conditions.
Gold swung between gains and losses following the report, as investors weighed the positive jobs number against lackluster wage growth and signs of higher unemployment.
Gold is "still in a defensive mode. The bears are in control," said Bob Haberkorn, senior market strategist at RJO Futures. "You need an event to push it higher."
The precious metal has sold off in recent weeks as the Federal Reserve has raised interest rates and laid out plans for tighter monetary policy. Gold pays its holders nothing, and struggles to compete with yield-bearing assets when borrowing costs rise.
The WSJ Dollar Index was recently up 0.2% to 88.35, making dollar-denominated metals such as gold and copper more expensive to foreign buyers.
Meanwhile, copper for September delivery fell 0.5% to $2.6470 a pound in New York.
Write to Stephanie Yang at stephanie.yang@wsj.com
(END) Dow Jones Newswires
July 07, 2017 17:00 ET (21:00 GMT)