Gold retreated on the US non-farm payrolls number for June, which came in much stronger than forecast.
The Dow Jones Industrial Average climbed above 17,000 for the first time on the back of the figures as investors piled in ahead of the long 4th July weekend.
A hint at the non-farms outcome had come on Wednesday with the ADP private sector report and today’s numbers also beat consensus forecasts by a similar amount.
Against estimates of about 215,000, the US economy created 288,000 jobs in June while the rate of unemployment dropped to a near six-year low of 6.1%.
Spot gold dropped US$10 on the data on the prospect it may encourage the US Federal Reserve to raise interest rates earlier than expected.
That possibility boosted the US dollar. Gold and the US currency traditionally move in opposite directions.
Gold had been edging up steadily this week due to the political developments in Iraq, Israel and Ukraine and the Fed’s promise to keep US interest rates low for a considerable period of time, but further gains may be a struggle from here said traders.
The US economy has now created more than 200,000 jobs in the each of the last five months, with upward revisions for April and May’s figures also announced today. The average for 2014 so far is 231,000 per month.
Silver eased lower to US$21,04, while platinum shed US$6 to US$1,498.
Market movers
Randgold Resources down 25p at 4,950p
Fresnillo up 18p at 923p
Anglo American up 29p at 1,514p