Gold falls as stocks gain on U.S. earnings, jobs report
Investing.com - Gold prices fell on Monday after investors ditched safe-haven positions in the yellow metal and went long on U.S. stocks due to earnings and jobs data.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at 1,288.60 a troy ounce during U.S. trading, down 0.48%, up from a session low of $1,287.10 and off a high of $1,296.40.
The December contract settled up 0.94% at $1,294.80 on Friday.
Futures were likely to find support at $1,281.00 a troy ounce, Friday's low, and resistance at $1,314.60, last Tuesday's high.
U.S. stocks rose on Monday after legendary investor Warren Buffett's company Berkshire Hathaway beat expectations, which cut into the need for safe-haven gold positions.
Meanwhile, a second take on Friday's U.S. July jobs report left investors concluding the labor market continues to improve despite persistent slackness, which leaves the Federal Reserve on track to dismantling stimulus programs that have supported the yellow metal for years.
The Labor Department reported Friday that the U.S. economy added 209,000 jobs in July, missing expectations for an increase of 233,000, though July marked the sixth consecutive month that the U.S. economy created over 200,000 new payrolls.
The report also showed that the U.S. unemployment rate ticked up to 6.2% last month from 6.1% in June. Analysts had expected the rate to remain unchanged in July, though the report revealed that more unemployed Americans were entering the labor force in search of work last month, a positive sign.
The unemployment rate does not include discouraged unemployed individuals who have given up actively searching for work, so a decision by many to look for jobs can send the headline rate higher, though it also suggests out-of-work Americans are more hopeful with their job prospects.
Meanwhile, silver for September delivery was down 0.82% at $20.203 a troy ounce, while copper futures for September delivery were up 1.02% at $3.247 a pound.
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