Gold plummets on upbeat jobs report
New York (Oct 4) Gold futures on Friday slumped below 1,200 U.S. dollars in its lowest level since February 2010 as an encouraging jobs report weighed on haven demand.
The most active gold contract for December delivery on the COMEX division of the New York Mercantile Exchange tumbled 22.2 dollars, or 1.83 percent, to settle at 1,192.9 dollars per ounce. Gold fell 1.9 percent for the week and is down 1.1 percent year to date.
The jobs report released on Friday painted a rosy picture of the employment market, adding evidence that the U.S. economy is head toward a full recovery, which further dampened needs for the safe-haven asset.
The U.S. Labor Department reported Friday that the country created 248,000 jobs in September and hiring in August turned out to be a lot stronger than initially reported. Meanwhile, the unemployment rate fell to a six-year low of 5.9 percent, dropping below the 6-percent mark for the first time since 2008.
In spite of growth concerns over Europe, market analysts held a bearish view of gold as they believed that the U.S. fundamental remains strong.
Silver for December delivery fell 22.1 cents, or 1.3 percent, to 16.826 dollars per ounce. Platinum for January delivery lost 43. 5 dollars, or 3.42 percent, to 1,226.9 dollars per ounce.