AFP, London :
The price of gold collapsed this week close to five-year lows, punished by mounting speculation of a US Federal Reserve rate hike later this month.
Gold nosedived to $1,046.43 per ounce on Thursday, touching the lowest level since early February 2010, as the stronger dollar dented demand.
Upbeat non-farm payrolls data on Friday reinforced expectations of a December 16 Fed rate increase, dealers said.
“Gold has been taking a hammering on increasing expectations of a December rate rise in the United States,” Sucden analyst Kash Kamal told AFP.
The US economy pumped out 211,000 new jobs in November, the Labor Department said, a solid figure that supports the Fed starting to raise rates this month.
“This number just solidifies the rate hike for December and therefore gives us the down side on gold that I expect in the medium term,” said analyst James Hughes at trading firm GKFX.
The unemployment rate held at a seven-year low of 5.0 percent, and job creation numbers for the previous two months were revised upward, more indication that the US economy remains strong despite the global slowdown.
“Another strong jobs report from the US today has all but guaranteed a Fed rate hike on 16th December,” agreed Oanda analyst Craig Erlam.
The price of gold collapsed this week close to five-year lows, punished by mounting speculation of a US Federal Reserve rate hike later this month.
Gold nosedived to $1,046.43 per ounce on Thursday, touching the lowest level since early February 2010, as the stronger dollar dented demand.
Upbeat non-farm payrolls data on Friday reinforced expectations of a December 16 Fed rate increase, dealers said.
“Gold has been taking a hammering on increasing expectations of a December rate rise in the United States,” Sucden analyst Kash Kamal told AFP.
The US economy pumped out 211,000 new jobs in November, the Labor Department said, a solid figure that supports the Fed starting to raise rates this month.
“This number just solidifies the rate hike for December and therefore gives us the down side on gold that I expect in the medium term,” said analyst James Hughes at trading firm GKFX.
The unemployment rate held at a seven-year low of 5.0 percent, and job creation numbers for the previous two months were revised upward, more indication that the US economy remains strong despite the global slowdown.
“Another strong jobs report from the US today has all but guaranteed a Fed rate hike on 16th December,” agreed Oanda analyst Craig Erlam.
