Gold falls over 2% as strong US jobs data boosts recovery bets

Bengaluru - Gold set for worst week since March 13.

Gold prices dipped more than 2 per cent on Friday as hopes for a global economic rebound got a boost from stronger-than-expected US non-farm payrolls data, reducing demand for safe havens.
Spot gold slid 1.9 per cent to $1,678.81 per ounce at 1:21 p.m. ET (1721 GMT). US gold futures settled down 2.6 per cent to $1,683.
Bullion has declined about 2.6 per cent so far this week, on track for its biggest fall since the week ending March 13.
"We had significantly stronger-than-expected US payroll numbers - an increase of 2.5 million versus an expectation of a decline of 7.5 million - that 10-million swing has brought forward expectations of the economic recovery in the United States," said Bart Melek, head of commodity strategies at TD Securities.
Gold was also being pressured by stronger yields and a slightly firmer dollar, "meaning the opportunity cost to hold gold in the portfolio has gone up," Melek added.
Wall Street surged following a crash into bear territory as the latest US data showed a drastic fall in unemployment to 13.3per cent in May from 14.7per cent in April as layoffs abated.
The data comes ahead of a two-day policy meeting of the US Federal Reserve next week. The central bank has injected massive stimulus and cut interest rates to near zero to cushion the blow from the coronavirus pandemic.
However, "we've still got economic uncertainty, trade tensions, problems in the (United) States," said INTL FCStone analyst Rhona O'Connell. "For the longer term, the influences are definitely more positive (for gold) than negative."
Elsewhere, palladium rose 0.7 per cent to $1,945.81 per ounce, while platinum dropped 2.3 per cent to $817.49.
Silver slipped 2.3 per cent to $17.32 per ounce, and was set for its first weekly decline in five. - Reuters