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PRECIOUS-Gold extends losses as U.S. jobs report boosts dollar
December 8, 2014 / 12:31 AM / 3 years ago

PRECIOUS-Gold extends losses as U.S. jobs report boosts dollar

SINGAPORE, Dec 8 (Reuters) - Gold extended losses to a third
session on Monday as a robust U.S. nonfarm payrolls report
boosted the dollar to its highest in over five years, dulling
bullion's appeal as a hedge.
    
    FUNDAMENTALS
    * Spot gold eased 0.2 percent to $1,189.94 an ounce
by 0020 GMT.
    * The metal lost 1.1 percent in the previous session after
data showed U.S. employers added the largest number of workers
in nearly three years in November and wage gains picked up, in a
sign of economic strength that could draw the Federal Reserve
closer to raising interest rates. 
    * Investors fear higher rates would decrease demand for
gold, a non-interest-bearing asset.
    * The jobs report boosted the dollar to its highest since
March 2009, and the Dow and S&P 500 ended at record highs. U.S.
bond prices dropped, pushing short-term yields to their biggest
single-day rises in nearly four years as investors priced in a
U.S. interest rate hike by mid-2015.
    * Despite Friday's losses, gold ended the week higher on
short-covering and modest rebound in oil prices. 
    * Hedge funds and money managers boosted their bullish
position in U.S. gold contracts to the highest since August in
the holiday-shortened week to Dec. 2, the Commodity Futures
Trading Commission said on Friday. 
    * SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.12 percent to
720.91 tonnes on Friday. 
    * The cost of lending gold returned to positive territory on
Friday for the first time in over a month, capping a dramatic
week-long recovery, as robust U.S. jobless data reinforced
expectations of higher interest rates next year. 
    * For the top stories on metals and other news, click
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    MARKET NEWS
    * The dollar started trade on Monday at its highest in over
five years against a basket of major currencies, having rallied
hard late last week on the back of a surprisingly robust U.S.
employment report. 
    
    DATA/EVENTS (GMT)
    0200 China Exports Nov
    0200 China Imports Nov
    0200 China Trade Balance Nov
    
    PRICES AT 0020 GMT
 Metal            Last     Change  Pct chg
                                          
 Spot gold        1189.94   -1.81    -0.15
 Spot silver        16.22   -0.03    -0.18
 Spot platinum    1220.24    5.44     0.45
 Spot palladium    801.72    3.68     0.46
 Comex gold        1190.3    -0.1    -0.01
 Comex silver       16.25  -0.008    -0.05
 Euro               1.229                 
 DXY               89.365                 
                                          
 COMEX gold and silver contracts show the
 most active months
 
 (Reporting by A. Ananthalakshmi; Editing by Richard Pullin)

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