Gold Down 0.7 Percent As Employment Rises

Bloomberg reported the drop in the price of gold, down 0.7 percent to $1,602.90 an ounce, as employment increased in the US in July causing the Federal Reserve reticence to announce economic boosting measures.

As quoted in the report:

The 163,000 increase in employment followed a revised 172,000 gain in June, Roseland, New Jersey-based ADP Employer Services said today. The median estimate in a Bloomberg survey called for an advance of 120,000. The Fed concludes a two-day meeting today, and the European Central Bank convenes tomorrow. Bullion rose 0.6 percent last month amid expectations that central banks in the U.S. and Europe will take additional steps to spur growth.

David Meger, the director of metal trading at Vision Financial Markets in Chicago, commented:

The employment numbers have led traders to believe that the Fed may wait for some more time before announcing any measures. The market showed some strength last week as expectations of easing gained momentum.

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