Gold futures fell on Wednesday, as the U.S. dollar gained following reports showing strong job growth, lowering demand for the precious metal.
Gold for February delivery dropped $3.90 to finish at $803.70 an ounce on the New York Mercantile Exchange. Earlier today, gold was down at $798.
Two economic reports were released on Wednesday, raising investor confidence in the U.S. economy and dollar subsequently, putting pressure on precious metals.
A double dose of positive U.S. economic news pumped up the dollar this morning and pulled gold back swiftly to under $800 once again, said Jon Nadler, an analyst at Kitco Bullion Dealers, in a research note.
A report by the ADP Employer Services said 189,000 jobs were added in November, a sign the job market remains robust. The Labor Department reported worker productivity increased by an annual rate of 6.3 percent in the summer. This is the fastest recorded growth in four years.
The dollar index, which tracks the performance of the greenback against a basket of other major currencies, rose 0.7 percent at 76.220. The central bank is expected to lower its benchmark federal funds rate, which stands at 4.50 percent, to stimulate sluggish economic growth.