Better than expected jobs data had gold slip lower early morning

The gold price climbed $10.20 to $1,657.85 per ounce Friday morning, holding firm despite a stronger than expected jobs report in the United States. The Labor Department reported a gain of 117,000 nonfarm payrolls versus an estimate of 85,000 according to a Bloomberg survey of economists. The unemployment rate fell 0.1% to 9.1%. The weak jobs picture has been a key area of focus for the U.S. Federal Reserve. Tepid jobs data, notwithstanding this stronger than anticipated report, has been a key driver of rising speculation that Chairman Bernanke may be preparing for a third round of quantitative easing. Gold prices are advancing as traders and investors add to positions in the yellow metal via physical gold, gold futures, and exchange-traded funds backed by gold bullion.

“Gold opened higher this morning at 1660/1661. Better than expected jobs data had gold slip lower early morning but with investor confidence in the economy still soft Gold was bid up eventually reaching an intraday high of 1666.50/1667.50 mid session. As equities continued their morning selloff, profit taking in gold took the metal to an intraday low of 1648/1649 mid day. Choppy trading for the remainder of the session took gold to its close at 1649/1650.”