(RTTNews) - The price of gold slipped back below the $1,700-mark Friday morning as upbeat data from a struggling US labor market dimmed hopes for more stimulus measures from the world's biggest economy.
Gold for December delivery, the most actively traded contract, shed $8.50 to $1,697.10 an ounce. Yesterday, gold settled above the $1,700-mark for the first time since early March after the European Central Bank at its policy meeting unveiled a new bond-buying plan that is expected to bail out troubled economies of the euro area. The much awaited easing measures came with the ECB President Mario Draghi detailing plans of its bond-buying program from weaker countries of the euro zone.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,293.14 tons.
Meanwhile, the U.S. dollar was extending its two-month low versus the euro and four-month low against sterling. The buck was moving up toward a three-week high versus the yen and trading higher against the Swiss franc.
In economic news, Germany's exports and imports increased unexpectedly in July, data from Destatis revealed. Exports grew 0.5 percent month-on-month, partially offsetting June's 1.4 percent fall. Likewise, imports gained 0.9 percent after falling 2.9 percent in June. Economists had forecast a 0.5 percent drop in exports and 0.3 percent decrease in imports.
Meanwhile, U.K. industrial production recovered in July at a faster than expected pace, data from the Office for National Statistics showed. Industrial output grew 2.9 percent month-on-month, reversing June's 2.4 percent fall. The increase exceeded the 1.5 percent rise forecast by economists.
The prices of silver and platinum were moving lower in morning deals.
From the U.S., the Labor Department will release its monthly non-farm payroll report at 8:30 am ET. Economists expect non-farm payrolls for August to increase by 125,000, while the unemployment rate is expected to remain unchanged at 8.3 percent. The private sector is expected to have added 134,000 jobs. In July, the economy added 163,000 jobs.
