Gold (COMEX:GCN14) futures traded little changed in New York after a government report showed that U.S. employers added more jobs than forecast in May.
The 217,000 advance followed a 282,000 gain in April, the Labor Department said. The median forecast in a Bloomberg survey of economists called for a 215,000 gain. Unemployment in May was unchanged at 6.3 percent. Gold tumbled 28 percent last year on expectations that the Federal Reserve would reduce stimulus as the economy strengthens.
Bullion’s 60-day historical volatility this week reached the lowest since April 2013, and the value of exchange-traded funds backed by gold shrank by $2.6 billion in May, the most this year. The metal’s appeal as a haven diminished as U.S. equities surged and tension between Ukraine and Russia eased. More than $1.1 trillion was added to the value of global stock markets last month.
“The jobs number is not a game changer, but it shows that the economy is moving in the right direction,” Chris Gaffney, the senior market strategist at EverBank Wealth Management in St. Louis, said in a telephone interview.
Gold futures for August delivery rose 0.1 percent to $1,254.90 an ounce at 8:47 a.m. on the Comex in New York. Prices reached $1,240.20 on June 3, the lowest since Jan 31.
Bullion climbed 0.7 percent yesterday after the European Central Bank became the first major central bank to take one of its main rates negative as President Mario Draghi unveiled historic measures to fight deflation.
The Fed reduced its monthly asset buying to $45 billion in April after the fourth straight $10 billion cut.
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