WSJ: Comex Gold Trims Losses as U.S. Jobs Data Near Expectations
By Matt Day
NEW YORK--Gold futures cut their earlier losses on Friday after a closely watched reading on the U.S. labor market came in near expectations, easing worries that the Federal Reserve would pull the plug on its easy-money policies.
The U.S. economy added 155,000 jobs in December, just short of the 160,000 economists had expected. The unemployment rate stood at 7.8%, the same as November's upwardly revised figure.
The most actively traded contract, for February delivery, was recently down $36.60, or 2.2%, at $1,638 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold futures were trading near four-month lows ahead of Friday's jobs report, as investors bet that the Fed could throttle back on its current stimulus program sooner than some had expected. During the central bank's latest policymaking meeting, several officials favored slowing or stopping the current bond-buying program before the end of 2013, according to minutes released after gold's settlement on Thursday.
The Fed's easy-money policies have helped boost gold prices to record highs in recent years, as investors worried about potential inflation down the line sought shelter in precious metals.
Gold early Friday fell as low as $1,630.30 a troy ounce, the lowest price since mid-August.
