Spot gold prices are trading in negative territory Monday extending their losses from the previous day. Spot gold ended Friday’s session $9.80 lower at $1780.60 a troy ounce, with prices correcting lower amid a surprise drop in US unemployment, which fell to a near-four year low of 7.8% in September. The better than expected non-farm payrolls number has put some short term pressure on gold, with some doubts creeping in as to whether or not the recent stimulus measures put in place by the US Federal Reserve to boost the labour market would last as long as initially thought. Spot gold prices have continued to decline in Asian trade this morning, taking their cue from some increased demand for the US dollar. Market depth remains more skewed towards the thin side with both Tokyo and New York both closed for holidays, although China have returned to the market today after a week’s long public holiday. Spot gold has extended lower from highs of $1780.90/oz to an intra-day low of $1768.50, with prices remaining weak currently trading $1768.60/oz, down $12 on the session.
EasyForexNews Research Team