NEW YORK (
were paring losses on Friday after the major U.S. equity markets pulled back from their highs on the robust February jobs report.
The Bureau of Labor Statistics said Friday that nonfarm payrolls for February climbed to 236,000 from the prior month's downwardly revised 119,000. Consensus among economists had been expecting payrolls to add 160,000 jobs. Additionally, the unemployment rate -- an indicator the
Federal Reserve is monitoring as it pertains to a policy of low interest rates -- shifted down to 7.7% from a previous read of 7.9%.
Gold for April delivery was coming off session lows following the favorable jobs report as prices were decreasing just $1.10 to $1,574 an ounce at the Comex division of the New York Mercantile Exchange. The
traded as high as $1,583.10 and dipped as low as $1,560.40 -- a bottom the yellow metal hit shortly after the employment statistics printed.
The spot price was losing 90 cents, according to Kitco's gold index.
"It was when the number came out that we saw this
reaction," said Ole Hansen, head of commodities strategy at Saxo Bank in Copenhagen. "At the same time we've had a continued rally in stock markets, which is obviously burying relief, I think, among many observers who are still looking for an elusive correction, which just doesn't materialize."
Hansen said the rally in equities has encouraged investors to move their money out of safe-haven assets like gold and into the more advantageous return on stocks.
After the initial selloff, the yellow metal displayed some resilience as it climbed back to the flatline and inched slightly above it. This corresponded with a pullback in the major U.S. equity markets.
"Once we saw equities start to digest the
number a little bit more, that's when we started to see equities come off
their highs and
when the bottom was put in on the metals," said Phil Streible, senior commodities broker at RJO Futures. "I think that people are really not buying that number as much -- 236,000 -- and they're really thinking that there will be big revisions down when we come up with this next nonfarm payroll."