Gold prices fell 0.7 percent or $8.56 Wednesday to $1,223.40 an ounce as U.S. jobs data caused the dollar to rise and increased the appeal of stocks.

Gold prices fell 0.7 percent or $8.56 Wednesday to $1,223.40 an ounce as U.S. jobs data caused the dollar to rise and increased the appeal of stocks, according to Reuters. The dollar hit a one-month high in the aftermath of a jobs report showing private employers added 238,000 jobs in December, a 13-month high. Investors anticipate the Federal Reserve will taper its stimulus spending even further, which also makes gold less appealing. Despite the recent drops, gold is up 1.8 percent so far for 2014.

“The market probably got a bit carried away at the beginning (of the year), helped by the firm rejection of the lows on Dec. 31 and the news about strong Chinese demand, which now seems to have stabilised,” Ole Hansen, Saxo Bank’s head of commodity strategy, told Reuters.

Gold futures for February delivery in the U.S. were down $6.30 an ounce to $1,223.30, Reuters reported.

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