Gold reaches $1,750 as US dollar falls on jobs data
Gold edged higher this afternoon to reach the US$1,750 per ounce level as the US dollar dropped, hit by the double whammy of a surge in the euro and better than expected US employment data.
The US Department of Labor said this afternoon that the US economy added 120,000 jobs last month, which was about in line with projections.
Importantly, the non-farm payrolls report showed that the rate of unemployment slipped from nine percent in October to 8.6 percent in November, giving investors hope that the US economic recovery is back on track.
The data prompted investors to pour money into riskier assets and reduced demand for the safe haven greenback.
Meanwhile, Germany and France are working on a proposal to make changes to treaties that regulate the euro zone to impose stricter budget discipline within the monetary Union to save the 17-nation currency.
German Chancellor Angela Merkel and her French counterpart Nicolas Sarkozy are set to meet on Monday to discuss their plan ahead of Wednesday's EU summit.
The US dollar is seen as an alternative asset to gold and has an inverse relationship with the yellow metal.
Gold traded at US$1,750/oz, up US$5 from Thursday's close. Silver rose 33 cents to US$33/oz and platinum declined US$6 to US$1,555/oz.
Today's top risers in the sector were:
Triple Plate Junction (LON:TPJ), up 8.5 percent at 4.75 pence at midday
Alecto Minerals (LON:ALO), up 7.5 percent at 2.15 pence
Serabi Gold (LON:SRB), up 7 percent at 9.35 pence
Minco (LON:MIO), up 4.5 percent at 3 pence
The top fallers were:
ECR Minerals (LON:ECR), down 12.5 percent at 1.05 pence at midday
Caledonia Mining (LON:CMCL), down 8.5 percent at 6.4 pence
Landore Resources (LON:LND), down 3.5 percent at 9.76 pence
Chaarat Gold (LON:CHG), down 2.5 percent at 25.1 pence
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