Gold Futures Fall as U.S. Payrolls Gain Fuels Stimulus Concern

Bloomberg (07/12) -- Gold fell to a five-month low after the U.S. added more workers than forecast last month, fueling concern that the Federal Reserve will start to curb stimulus.

Payrolls climbed 203,000 in November, exceeding the 185,000 median forecast in a Bloomberg survey, the Labor Department said. Prices swung between gains and losses after the report, falling as much as 1.8 percent to $1,210.10 an ounce, the lowest since July 5, before jumping almost $35 in about 30 minutes. The metal dropped 27 percent this year on concern the Fed will cut its $85 billion in monthly bond buying. Gold futures for February delivery slid 0.2 percent to settle at $1,229 at 1:44 p.m. on the Comex in New York. The metal fell 1.7 percent this week. Bullion is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value. The U.S. economy grew more than initially estimated in the third quarter, government figures showed yesterday. Minutes of the Fed’s October meeting released Nov. 20 showed policy makers expected an improving economy to allow debt purchases to be trimmed in coming months.