Gold slides as non-farms surpass forecasts
New York (Feb 6) Gold headed sharply lower after a stronger than expected US non-farms payroll number.
The US economy added 257,000 jobs in January, well ahead of consensus forecasts of between 220,000 and 230,000 with significant upward revisions in previous months as well.
Economists said the strength of the numbers, which also included a rise in hourly wages and a huge upward revise of November’s figure, firmly pointed to a rise in interest rates in June.
The US Federal Reserve sees job creation and the level of employment as key measures in setting its monetary policy.
With January’s number and revision of the past two months, the US economy has created more in jobs in a single quarter than it has for seventeen years.
The jobs figures boosted the dollar and gold traditionally moves the opposite way to the US currency and Treasury Bonds.
Deflation problems in Europe and the slide in crude has seen that inverse relationship weaken recently but it was back in evidence today.
An hour in to trading on Wall Street, the spot price of gold was US$23 lower at US$1,241.
Silver and platinum were also affected. Silver dipped below US$17 to US$16.74, while platinum dropped US$28 to US$1,222.