Gold futures on the COMEX Division of the New York Mercantile Exchange saw the biggest decline in almost one year, and plummeted to a one-week low on Friday, as dollar went up sharply on
much-better-than-expected job data. Silver and platinum both fell.
The most active gold contract for February delivery plunged 48. 80 dollars, or 4 percent, to finish at 1,169.50 dollars an ounce, failing to
extend all-time high. In the after-hours electronic trading, the contract touched as low as 1,147.40 dollars.
The dollar jumped sharply on Friday morning after a report said the U.S. unemployment rate dropped unexpectedly in November, which made
investors more optimistic that the Federal Reserve might raise interest rates sooner than expected.
A report from the Labor Department indicated the U.S. employers cut 11,000 jobs last month, the smallest monthly loss since December 2007 and
much lower than the 130,000 losses economists had expected.
Meanwhile, the unemployment rate fell to 10 percent from a 26- year high of 10.2 percent in October. High unemployment rate is considered as one important factor that keeps the Fed from raising the record low interest rates.
After the encouraging data, the dollar index, a gauge measuring the greenback's value against other major currencies, leaped more than 1.4
percent to a one-week high of 75.73 by the end of gold floor trading time, leading investors to sell off the precious metal to pocket profits after a
huge rally in recent sessions.
March silver was down 60.8 cents to 18.52 dollars per ounce. January platinum dropped 44 dollars to 1,449.70 dollars an ounce.