Gold prices fell 1.4% on MCX futures soon after US job data was announced in early US trading hours. Employers in the US added more jobs than forecast in January.
The 257,000 advance in payrolls last month followed a 329,000 gain in December that was bigger than previously reported, figures from the Labor Department showed.
Soon after this announcement international gold price fell from $1,260 to $1,238 per ounce and on MCX April future, which was quoted at Rs 27,350 ($442) in evening fell to low of Rs 26,881 and recovered a bit to trade at Rs 26,930 per 10 gram following the US job data.
A stronger economy has encouraged companies in US to boost hiring, creating a virtuous cycle of growth as Americans spend newfound incomes on goods and services. Sustained job growth will probably help assure Federal Reserve policy makers that the expansion is well-rooted and can withstand an increase in interest rates later this year.
