The price of gold futures fell for the third time in four days in New York, United States, Thursday (22/12/2011) local time. This is due to the strengthening of the U.S. labor market and the decline in holdings of gold exchange traded fund investors.
Gold for February delivery fell 0.2 percent to 1610.60 per troy ounce (equivalent to 31.1 grams) at 1:49 PM on the Comex, New York, Thursday. Throughout the year, gold prices have risen as much as 13 percent. “The unemployment rate is better than expected, and we saw the U.S. dollar rebounded,” said Dennis Cajigas, senior market strategist Zaner Group in Chicago, Thursday.
Government report showed jobless claims fell 4,000 to 364,000 last week. That figure is the lowest since April 2008. Therefore, the U.S. dollar was lifted so that eroded demand for gold as an alternative asset. In addition, gold prices were affected by the decline in gold holdings of investors exchange traded fund (ETF) for a fifth day to its lowest since Nov. 16.
According to Bloomberg, the investors are selling gold to cover losses in other markets. “The U.S. economy is beginning to find some traction. Number of ETFs is also a factor,” said Cajigas.