After falling for much of the morning, gold for April delivery was headed higher, up $10.70 to $1,709.40 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,712.50 and as low as $1,677 an ounce, while the spot price was adding $9.60, according to Kitco's gold index.
This week's series of employment data concluded Friday with the government's nonfarm payrolls report, which show continued growth, albeit at a slightly slower pace of 227,000 in February compared with an upwardly revised increase of 284,000 the preceding month. Economists surveyed by Thomson Reuters were expecting growth of 210,000. The change in December was also upwardly revised, to 223,000. The unemployment rate stayed at 8.3% last month.This was the first time since early last year that payrolls have increased more than 200,000 three months in a row. "The gains were a tad better than expectations, but with upward revisions, so
"Gold's three-and-a-half year bullish line is currently crossing near the $1,591 area and its 200 day moving average is at $1,672," noted Jon Nadler, senior metals analyst with Kitco Metals. Sentiment is clearly shaky, and traders aren't clear on where the floor for gold prices could be, he added. The government's job report also stoked fears that the Federal Reserve may pull back on further economic stimulus. "Monetary policy expectations and inflation expectations (or the lack thereof) have become the principal drivers of the price of gold in recent weeks," said Nadler. "The general idea is that if the US economy continues to show such signs of improvement, the Fed would be less and less inclined to offer anything that smacks of a
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