Gold prices dip as strong U.S. jobs data boosts risk sentiment

Gold prices slipped on Monday as an unexpected improvement in U.S. employment numbers boosted optimism about economic recovery, boosting risk appetite and denting the appeal of the safe-haven metal.

Spot gold was down 0.2% at $1,682.57 per ounce, as of 1241 GMT. U.S. gold futures were up 0.3% at $1,688.10.

Last week, the bullion dropped 2.4%, its largest weekly fall since the week ended March 13 and a third consecutive weekly drop.

The U.S. economy unexpectedly added jobs in May after suffering record losses in the prior month, data on Friday showed, indicating that the downturn triggered by the coronavirus outbreak was probably over and boosted equity markets.

Speculators cut their bullish positions in COMEX gold, and increased them in silver contracts in the week to June 2, the U.S. Commodity Futures Trading Commission said on Friday.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings, dipped 0.4% to 1,128.11 tonnes on Friday.

Palladium rose 0.4% to $1,961.30 per ounce and silver was up 0.5% to $17.45, while platinum declined 1.7% to $821.78.

Via Reuters