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Gold Down on Falling Jobless Rate

Written By Brian Hicks

Posted October 8, 2012

Remember the high anticipation surrounding the Federal stimulus? Investors are now taking an enforced breather. After the latest U.S. jobs report showed September’s jobless rate fell to 7.8 percent from 8.1 percent, gold futures dropped from the highest point in almost a year, accompanied by silver.

Gold had been riding close to $1,800 per ounce based on increasing anticipation of more stimulus programs.

Bloomberg reports:

“People are throwing in the towel,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Investors are now speculating on how long the third round” of qualitative easing will continue in the U.S., he said.

Futures for December dropped 0.9 percent to stabilize at $1,780.80 in the afternoon on Comex New York on Friday after the falling unemployment rate was announced. Silver dropped 1.5 percent to $34.572 per ounce.

Overall, gold has risen 14 percent and silver 24 percent this year. The upset occurred since the jobless rate was expected to rise slightly to 8.2 percent.