Gold prices dropped again as traders continued to bet the global economy is on its way to better days. The metal has dropped more than $30 in the last two sessions.
The most-actively traded June gold contract finished at $897.30, down $11.60 for the session. Gold for immediate delivery dropped $11.80 to $895.60.
Employment continued to fall sharply in March, according to a report released by the Labor Department on Friday, with the decrease in payroll employment coming in roughly in line with economist estimates. The unemployment rate subsequently jumped to a twenty-five year high.
The report showed that non-farm payroll employment fell by 663,000 jobs in March following an unrevised decrease of 651,000 jobs in February. The drop in jobs came roughly in line with economists' expectations of a decrease of 658,000 levels.
With the continued decrease in jobs, the unemployment rate rose to 8.5 percent in March from 8.1 percent in the previous month, in line with expectations. With the increase, the unemployment rate rose to its highest level since November of 1983.
Later in the morning, the Institute for Supply Management said its non-manufacturing index fell to 40.8 in March from 41.6 in February, with a reading below 50 indicating a contraction in the service sector. The decrease came as a surprise to economists, who had expected the index to edge up to 42.0.
The dollar was mixed against other major currencies on Friday in New York. The buck edged up against euro while dropping against the pound for the fifth day in a row.
June gold closed at $908.90, down $18.80 for the day. Gold for immediate delivery fell to $907.40 an ounce, down $18.70.
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