Gold Down on Strong US Jobs Data

Posted By: Religare
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Gold futures closed lower in the international market on Friday as the dollar jumped after a key report on payrolls in July showed stronger-than-expected job creation.

Gold Down on Strong US Jobs Data

The U.S. labor market added an impressive 209,000 new jobs in July, more than most economists were banking on. The unemployment rate fell back to a 16-year low of 4.3%.

The data rallied stocks and the dollar index, dulling demand for gold, which tends to move inversely to the greenback.

A cheaper dollar is beneficial to precious metals investors using weaker currencies. Both markets are affected by interest-rate policy, as higher rates support the dollar but also dull the appeal of nonyielding metals in favor of interest-bearing assets.

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