World Economy

Gold Falls 

Gold Falls Gold Falls 

Gold prices were lower on the London spot market Friday, ahead of US nonfarm payrolls data that is expected to offer fresh support for the view that interest rates will rise before the end of this year, Dow Jones reported. Spot gold was down 0.6% at $1,106.41 a troy ounce in morning European trade, a two-and-a-half-week low. Economists expect strong growth of 200,000 jobs in September, versus a net gain of 173,000 in August, and the jobless rate to stay steady at 5.1%. This would signal further robustness in the US economy and likely shore up a decision by the Federal Reserve to raise interest rates, analysts say. A rate increase would most likely boost the dollar and pressure the dollar-denominated precious metal lower by making it more expensive for those holding other currencies to buy. Thin trading volumes from Asia wasn’t helping gold’s cause. Chinese traders and investors were away from their desks for a week long holiday. China and India together account for more than 50% of global gold demand.