Pressurized by Strong Dollar, Gold Drops to Two-month Lows After NFP Data
Gold slumped for a second day, looking set to close the week at the lowest in nearly two months on Friday as the U.S. dollar strengthened after the release of an upbeat report on jobs created in June, which may bolster the Federal Reserve’s case to hike rate further in the second half of the year.
Gold futures for August delivery dropped nearly 0.7 percent to trade around $1215.00 per ounce after data published by the Labor Department showed the U.S. created 222,000 new jobs in June. Thanks to accelerating hiring in the spring, the reading was the largest in four months and was well above analysts’ forecast calling for a rise of 175,000 jobs created last month.
While the hourly pay rose 0.2% to $26.25 an hour in June, the unemployment rate ticked higher to 4.4% from 4.3% in May (which was also the lowest jobless rate in 16 years) as more people entered the labor force in search of work.
Sell Stop at 1215.00, Take profit at 1210.00, Stop loss at 1217.00