Kristie Batten reports that the gold price slipped below $US1,100 an ounce on Friday after U.S. job figures were better-than-expected. October was the best month of job growth for the recovering U.S. economy, adding 271,000 non-farm jobs.
The unemployment rate dropped from 5.1% to 5%, the lowest level since February 2008. The strong result all but guarantees a December interest rate rise, with ANZ Research saying that the markets are now pricing in close to a 70% chance of a hike next month. Of course, all of that is bad for gold and it showed in the price reaction. Comex gold for December delivery plunged 1.5% to $,1087.70/oz, its lowest price since August.
Outside gold, it was pretty much a shocker for all metals on Friday. The iron ore spot price dropped another 1% or 50c to $48.21 per tonne, its lowest point since July. The price is now down by almost 15% over the past four weeks.
Nickel fell another 1.7% to $9,600/t, its lowest price since August, when it hit a six-year low. Copper dropped below $5,000/t after threatening to do so all week. The red metal closed at $4,993.50/t.
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