By Jasmine Horsey and Stephanie Yang
Gold prices retreated Monday after the release of strong U.S. nonfarm payrolls data at the end of last week quelled fears about the state of the country’s economy.
Gold for August delivery was recently down 0.2% at $1,355.60 a troy ounce on the Comex division of the New York Mercantile Exchange, on track for its third straight day of losses. Last week, gold rose to its highest level since March 2014.
According to Friday’s data, 287,000 jobs had added in the U.S. in June. The report was received with relief after a dismal May jobs report, which showed the lowest monthly gains in five years and left investors expecting that the Federal Reserve would hold off on increasing interest rates in the coming months.
”The data from Friday was surprisingly good,” said Bernard Dahdah, a precious metals analyst at Natixis. “If it weren’t for the situation we now have in Europe, gold prices could have possibly dropped below $1,250.”
The strength of the U.S. labor data would usually weigh heavily on the price of gold. But jitters about the global economy after the U.K.’s decision to leave the European Union continue to apply upward pressure, Mr. Dahdah said.