Gold futures on the COMEX division of the New York Mercantile Exchange fell Friday as U.S. equities showed strength.
The most active gold contract for June delivery lost 12.1 U.S. dollars, or 0.98 percent, to settle at 1,223.50 dollars per ounce. Gold was put under pressure as the U.S. Dow Jones Industrial Average rose by 91 points, or 0.52 percent, as of the market't close.
Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains. The precious metal was put under extensive pressure as a report released by the U.S. Department of Labor Friday showed nonfarm payrolls rising by 215,000 in March, which was much better than expected, and the labor participation rate also went up to 63 percent.
Analysts note that although the unemployment rate increased to 5 percent, this is still a sign of a strengthening U. S. economy. Another report released Friday showed the manufacturing sector rebounding, as the U.S.-based Institute for Supply Management indicated the composite manufacturing index of the country rose to 51.8, which was boosted by new orders.
Although the precious metal was put under pressure by a stronger U.S. dollar throughout most of the day, the U.S. Dollar Index was unchanged as of 1824 GMT, settling at 94.63. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
The economic reports released in the day were both positive for the U.S. economy, and analysts believe this will have an impact on the Fed's timing of the rate increases. Silver for May delivery fell 41.8 cents, or 2.70 percent, to close at 15.046 dollars per ounce. Platinum for July delivery dropped 22.3 dollars, or 2.28 percent, to close at 955.20 dollars per ounce.
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