Gold Price Swings Between Gains and Losses Following US Jobs Data

New York (Dec 2)  Gold prices shuffled between gains and losses Friday, as investors weighed the latest U.S. employment report.

Gold for February delivery was recently up 0.7% at $1,177.70 a troy ounce, trading near the highs of the day. Prices were as low as $1,168.40 a troy ounce earlier in the session.

Economists surveyed by The Wall Street Journal had expected 180,000 new jobs and a jobless rate of 4.9% in November.

Some investors believe the solid data will push the Federal Reserve to take a more hawkish approach to tightening monetary policy in coming months. Expectations of higher interest rates tend to weigh on gold, which struggles to compete with yield-bearing investments.

At the same time, however, average hourly earnings for private sector workers unexpectedly declined last month, hinting at a possible soft spot in the economy. As well, more than 400,000 Americans dropped out of the labor force last month, the report showed.

"The headline numbers sound awesome, but once you get past that, it's kind of a mixed bag," said Bob Haberkorn, a broker at RJO Futures.

Some investors are also buying the safe-haven metal ahead of Italy'sDec. 4 referendum on constitutional changes, Mr. Haberkorn said. A rejection of Prime Minister Matteo Renzi's proposals to overhaul Italy's political institutions could destabilize the country's politics, with potential ramifications for its fragile banking system and the European economy.

Silver for March delivery was recently up 1.7% at $16.78. January platinum was up 2.4% at $933.40 a troy ounce. March palladium was off 0.6% at $747.50 a troy ounce.

Source: NASDAQ