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Gold slumps to a near nine-month low following non-farm payroll figures

Gold trading below $1,700

Gold prices dipped below $1,700 on Friday as US non-farm payroll figures surpassed expectations.

America added 379,000 jobs in February, significantly more than the 180,000 forecasted by economists.

The market for the precious metal fell under pressure ahead of the employment statistics and lost ground in the immediate aftermath. The last time gold traded below $1,700 was in June 2020, just under nine months ago.

Gold price

In addition to better than forecasted job growth in February, the unemployment rate fell to 6.2%, from 6.3%.

The precious metal’s price has also been dented recently by rises in US bond yields and increasing optimism around an economic recovery.

“We see the rising bond yields as a sign of economic optimism, which has also prompted investors to sell some of their positions,” said Carsten Menke of Julius Baer.

The precious metal is also facing pressure from cryptocurrencies such as bitcoin, otherwise known as “digital gold”.