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PrintGold futures declined on Friday, after stronger-than-expected U.S. nonfarm payrolls data underlined speculation the Federal Reserve will start to taper its asset purchases at one of its next few meetings.
Gold prices have largely tracked shifting expectations as to whether the Fed would start unwinding its USD85-billion-a-month asset-purchase program by the end of the year.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery shed 0.24% on Friday to settle the week at USD1,229.00 a troy ounce.
Gold prices fell to a session low of USD1,210.10 a troy ounce immediately after the upbeat jobs report, the weakest level since July 5.
The February contract ended Thursday’s session down 1.23% to settle at USD1,231.90 a troy ounce.
Gold futures were likely to find near-term support at USD1,207.25 a troy ounce, the low from July 5 and resistance at USD1,251.50, the high from December 4.
On the week, Comex gold prices lost 1.71%, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.
The U.S. economy added 203,000 jobs in November, above expectations for jobs growth of 180,000, the Labor Department said. The unemployment rate fell to a five year low of 7.0% from 7.3% in October.
The report came one day after official data showed that the U.S. economy grew at an annual rate of 3.6% in the three months to September, well above the preliminary estimate for 2.6%.
The robust data raised the possibility that the Fed may start to scale back its USD85 billion-a-month asset purchase program as soon as its next monthly meeting on December 17 - 18.
In the week ahead, investors will be focusing on retail sales data out of the U.S. to further gauge the strength of the economy and the need for stimulus.
Prices of the precious metal are down approximately 27% this year, heading for the first annual loss in 13 years.
Elsewhere on the Comex, silver for March delivery settled 0.24% lower on Friday to close the week at USD19.52 a troy ounce. Comex silver prices ended Thursday’s session down 1.31% at USD19.57 a troy ounce.
Silver prices fell to USD18.89 a troy ounce on December 4, the lowest since July 8. March silver futures dropped 2.54% on the week. The precious metal is down approximately 36% this year.
Meanwhile, copper for March delivery rose 0.59% on Friday to close the week at USD3.248 a pound. Earlier in the session, prices of the industrial metal rallied to USD3.260 a pound, the highest since November 24, amid growing optimism over the health of the U.S. economy.
On Thursday, copper futures shed 0.6% to settle at USD3.229 a pound. On the week, Comex copper prices advanced 1.32%.
Official data released on Sunday showed that China’s trade surplus widened unexpectedly in November as exports rose more-than-expected, easing concerns over global growth prospects.
China’s trade surplus widened to USD33.8 billion last month from a surplus of USD31.1 billion in October, compared to estimates for a surplus of USD21.7 billion.
Chinese exports climbed 12.7% from a year earlier, beating expectations for a 7.1% increase and following a 5.6% gain in October. Imports rose 5.3%, missing forecasts for a 7.2% increase.
Market players now looked ahead to a raft of Chinese economic data later in the week, including reports on inflation, industrial production and retail sales.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
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