Chicago - XINHUA
Gold futures on the COMEX division of the New York Mercantile Exchange fell moderately on Friday, as a decrease in the US unemployment rate took away some traders' hopes for more economic stimulus measures. The most active gold contract for December delivery fell 15.7 US dollars, or 0.87 percent, to settle at 1,780.8 dollars per ounce. Gold gave back almost all its Thursday gains on Friday, retreating even further from the crucial level of 1,800 dollars an ounce. The precious metal sank in trading following a morning release by the US Department of Labor, which reported a drop in the US unemployment rate. According to the department, US nonfarm employment rose by 114,000 in September, while the jobless rate declined to 7.8 percent from 8.1 percent. This is the first time in almost four years that the rate has gone below eight percent. The upbeat employment data took its toll on gold futures, with the precious metal dropping 20 dollars immediately after the release. As the market has recently focused on continued quantitative easing policies from major central banks, an improvement in the economic situation dampened investors' hopes for more stimulus measures. Quantitative easing policies support gold, which traditionally takes strength from fears of inflation. Outside market forces were mixed, as the session saw gains in the Dow Jones Industrial Average but losses in crude oil. Silver for December delivery fell 52.9 cents, or 1.51 percent, to close at 34.572 dollars per ounce.