By Ira Iosebashvili 

Gold prices were headed for their biggest daily loss in a month Friday after robust U.S. employment data undercut the case for haven assets.

Gold for February delivery was recently down 1.3% at $1,462.20 a troy ounce on the Comex division of the New York Mercantile Exchange, which would be the largest single-day drop since November if it stays that low till the close.

Employers added 266,000 jobs in November and the jobless rate fell to a 50-year low of 3.5%, matching September's level, the Labor Department said Friday. Economists surveyed by The Wall Street Journal had forecast a gain of 187,000 new jobs in November.

The stronger-than-expected numbers pushed stocks and the dollar higher but weighed on gold, which had been boosted earlier in the year by fears that a trade fight with China would weigh on the U.S. economy and push the Federal Reserve to cut rates more aggressively than expected.

Gold struggles to compete with yield-bearing investments when rates rise.

Other popular destinations for nervous investors, such as Treasurys and the Swiss franc, also weakened.

In base metals, March copper was up 2.1% at $2.7205 a pound. Copper is heavily used in manufacturing and construction, making its price sensitive to economic growth.

Oil prices also rose. Brent crude, the global benchmark, was recently up 1.4% at $64.28 a barrel. The U.S. crude benchmark was up 1.1% at $59.08 a barrel.

(END) Dow Jones Newswires

December 06, 2019 13:23 ET (18:23 GMT)

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