Gold Extends Drop After U.S. Payrolls Rise More Than Expectedby
Gold extended declines after the U.S. economy added more jobs last month than forecast, reducing demand for the metal as a haven.
Payrolls climbed by 287,000 last month, exceeding the highest estimate in a Bloomberg survey, after a revised 11,000 gain in May, a Labor Department report showed Friday. The median forecast in a Bloomberg survey called for a 180,000 increase. The jobless rate rose to 4.9 percent as more people entered the labor force. Wages advanced less than projected.
Bullion has jumped more than 10 percent since the end of May amid mounting concerns over global growth, helping push holdings in gold-backed funds to the highest since 2013. The Federal Reserve wants more proof that hiring has resumed a healthy pace and that economic momentum is intact before raising interest rates, minutes released Wednesday of last month’s meeting showed.
Gold futures for August delivery fell 1.7 percent to $1,339.20 an ounce at 8:32 a.m. on the Comex in New York.