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Gold Rises After US Nonfarm Payrolls

March 9, 2013 at 6:15 by Vladimir Vyun

Gold advanced yesterday after US nonfarm payrolls came out much better than was predicted by specialists. The payrolls climbed by 236,000 in February, compared to the median forecast of 162,000. On top of that, the unemployment rate fell by 0.2 percentage point to 7.7 percent. Traders speculated that unemployment is still far from the Federal Reserve’s target of 6.5 percent, making it unlikely that the Fed will remove stimulus soon.

As an interesting fact, the metal rallied even as the dollar strengthened after the report. Previously, gold was showing a strong inverse correlation with the greenback, almost always falling while the currency was rising. Yet on Friday the precious metal showed strength even in face of stronger US currency, suggesting that gold bulls were right being optimistic.

April contract for gold rallied $1.80 (0.11 percent) to $1,576.90 per ounce on COMEX.

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