Forexpros – Gold prices fell on Friday after better-than-expected unemployment figures out of the U.S. sparked demand for the dollar, the metal’s traditional hedge.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,619.05 a troy ounce, down 0.06%.
Gold futures were likely to test support at USD1,594.05 a troy ounce, Wednesday’s low, and resistance at USD1,632.15, an earlier Friday high.
In the U.S. earlier Friday, the Bureau of Labor Statistics reported that the economy added a net 200,000 nonfarm payrolls in December, well above forecasts for a 150,000 gain.
The news sparked demand for the dollar, although market watchers pointed out the trend isn’t likely to be long term.
“Gold came under pressure because people are a bit more comfortable with the recovery of the economy, but it is going to remain rangebound until we get some significant news to push it into either direction,” said Fred Schoenstein, a metals trader at Heraeus Precious Metals Management, according to Reuters.
Overall, gold has been on the upswing in recent sessions.
“Gold went up after a lot of year-end liquidation last week. Money managers have to put their (gold) position back if they want to have it in their portfolio to show it to their clients,” Schoenstein added.
Elsewhere on the Comex, silver for March delivery fell 1.82% to trade at USD28.76 a troy ounce, while copper for March delivery traded up 0.28% to trade at USD3.44 a pound.
Forexpros
