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Gold falls to strong payroll data that drive risk assets

Gold falls to strong payroll data that drive risk assets


Gold prices fell on Friday after the US labor market report. It would be better than expected, which triggered high-risk assets.

At 11.38 am ET (1638 GMT), gold futures fell 1.3% to $ 1,463.65 a troy ounce, which lost almost all the gains obtained in a week of unequal economic data, and in a context of uncertainty in what It concerns the trade war between the United States and China. Cash gold fell 1.1% to $ 1,459.08.

The US economy UU. He added 266,000 jobs in November, which is explained, in part, by the return to work of those affected by the General Motors (NYSE: GM ) strike in October. The unemployment rate fell to 3.5% and the average weekly earnings growth increased at an annual rate of 3.1% from 3.0% in the previous two months.

In total, the report made the Federal Reserve less likely to reduce interest rates again in the short term, and bond yields increased between 3 and 4 basis points along the yield curve. Higher returns make interest-free gold less attractive in comparison.

Employment data turned to a market that was otherwise ready to realize some of its darkest fears.

Germany’s industrial production fell 5.3% year-on-year in October, the country’s statistics office said Friday. That is the largest year-on-year fall since 2009. Meanwhile, Canada’s labor market had its worst month since January 2018, with a 71,000 fall in employment.

Elsewhere, silver futures also fell sharply, losing 2.5% to $ 16.60 an ounce, while platinum fell 0.5% to $ 896.10 an ounce. By contrast, copper futures , traditionally a reliable indicator of industrial activity, reached their highest point in a month with a gain of 1.9% to $ 2.71 per pound.

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