Gold fell below $1 390 a troy ounce after key U.S. labor data was published at 12:30 GMT. According to the Bureau of Labor Statistics, the Change in Non-Farm Payrolls indicator rose to 175 000, 12 000 more than the 163 000 projection and significantly above the revised 149 000 value for April. The Unemployment Rate surpassed forecasts by 0.1% and stood at 7.6%, also 0.1% higher than last month’s figure.
Euro lost positions against the greenback, causing a slip in dollar-priced commodities, including gold as it trades in an inverse relation to the U.S. currency.
On the Comex division of the New York Mercantile Exchange, gold for August delivery lost 2.15% on the day and stood at $1 385.45 at 13:54 GMT. The precious metal reached a session high of $1 471.45 earlier in the session and a low at $1 380.95. Gold stood at $1 412.95 four minutes after the Bureau of Labor Statistics published its report, after which a steep slip followed causing a $30 loss as the yellow metal stood at $1 381.35 a troy ounce at 13:23 GMT.
Gold lost around 16% of its value this year and is 26% lower than the September 2011 all-time record high of $1 921.15 a troy ounce.
News from India in the last two days supported gold prices. The world’s biggest gold consumer will widen curbs on imports, which intends to counter the country’s record current account deficit. The Asian nation raised its duty on gold to 8%, up from 6%, as the current account gap surged to $32.6 billion. India, like many other countries was lured by the low gold prices, which fell to $1 321.95 on April 16. The country’ gold imports reached 162 tons last month, up from 142 in April. Restrictions should reduce that amount to 50-100 tons in June.
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