Gold drops amid strong US jobs data
Gold fell down in Asia on Monday, following a decline of as much as 4.4% to an over four-month low. Meanwhile, strong US jobs data fanned fears that the US Federal Reserve would increase interest and begin asset tapering earlier than expected.
Gold futures sank 1.19% to $1,742.10 by 1:20 AM ET (5:20 AM GMT), with prices hitting $1,684.37 earlier in the session.
The latest US jobs report, which was released on Friday, showed a better-than-expected 943,000 rise in non-farm payrolls, while the unemployment rate dropped to 5.4% in July. Investors are now anticipating further data, including the core consumer price index (CPI), due on Wednesday.
In India, one of gold’s biggest hubs, activity remained subdued. Prices eased in the country, where the physical gold market experienced a small premium in the previous week for the first time in a month.
In other precious metals news, silver plummeted 2.6% at $23.70, following a 7.5% slide to an over eight-month low of $22.50 per ounce earlier in the session. Meanwhile, platinum sank 1.5% and palladium inched up 0.2%.