By Adrian Ash
GOLD PRICES sank at their fastest pace 4 months Friday lunchtime in London, retreating below $1350 per ounce – and erasing all the week's previous 1.2% gains vs the Dollar – after the US reported much stronger-than-expected jobs growth for July.
US non-farm payrolls expanded by 255,000 on the government's first estimate, way above analysts' consensus forecast of 180,000.
Added to June's upwardly revised 292,000 – the strongest in 8 months – that makes for the strongest 2-month US jobs growth of 2016 to date on the Bureau of Labor Statistics' data.
Unemployment held at 4.9% however as the number of people in the jobs market rose, with some 7.8 million seeking work – a figure showing "little movement since August of last year."
Initially dropping $15 per ounce from London's morning benchmark price – formerly known as the Gold Fix – wholesale bullion headed for its sharpest intra-day fall since April Fool's Day, when stronger-than-expected US jobs data saw gold drop $18 to trade $130 below current levels.