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Comex Gold Prices Ease on Stronger U.S. Jobs Report

Friday August 03, 2012 8:49 AM

Comex gold futures saw modest price gains mostly evaporate Friday morning following a surprisingly stronger-than-expected U.S. employment report. The key non-farm payrolls component of the report rose by 165,000 in July, when only a rise of 95,000 was expected. December gold futures were posting gains of around $8 an ounce before the report and then sold off to trade around the unchanged level in the aftermath of the report. The stronger U.S. jobs report somewhat lessens the argument that the Federal Reserve will soon embark upon a monetary stimulus package, which would be at least initially bullish for the precious metals. However, the jury is still out on what the Fed is going to do with monetary policy in the coming weeks. In fact, it's doubtful Friday's jobs report will significantly sway the Fed's thinking on the matter. December gold last traded up $1.80 an ounce at $1,592.50.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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