(Kitco News) – The gold market has dropped into negative territory, and tested support above $1,700 an ounce following stronger-than-expected labor market data.
Friday, the Bureau of Labor Statistics said 263,000 jobs were created in September. The data beat expectations economists were forecasting job gains of around 248,000. At the same time the unemployment rate fell sharply to 3.5%, down from August’s reading at 3.7%. Economists were expecting the unemployment rate to remain unchanged.
The gold market saw some solid selling pressure in initial reaction to the data as it fell to session lows. December gold futures last traded at $1,715.50 an ounce, down 0.30% on the day.
Economists have said that the latest employment data continues to support the Federal Reserve’s aggressive monetary policy stance.