GOLD futures fell toward 950/oz on Friday, losing 2% as a monthly report showing the fewest US job losses since September boosted the dollar and economic recovery hopes dented gold’s safe-haven appeal.
“We have a very good employment number, and that lessens the flight to safety need for gold,” Bill O’Neill of Logic Advisers said. Economic optimism and technical resistance pushed gold lower after inflation worries helped lift bullion within sight of the 1000 level last week, traders said. US August futures settled down 19,70, or 2%, at 962,60/oz on the Comex division of the New York mercantile exchange.
Spot gold reached a one- week low of 954/oz, and was at 954,70/oz by early evening from 979,10/oz on Thursday. Bullion was under heavy pressure as the milder pace of job losses helped the dollar rally.
