Gold
slid 2 percent in heavy trade on Friday, breaking below $1,690 an ounce
for the first time in about two months as an encouraging U.S. non-farm
payrolls report lowered expectations for economic stimulus provided by
global central banks.
Better-than-expected numbers reduced the risk demand for gold,
and a drop below $1,700 an ounce triggered sell-stops and momentum
selling," said James Steel, metals analyst at HSBC. "There are also long
liquidation ahead of elections triggered by the job number," Steel
said.
Gold's
pullback brought its price near major technical support near its 100-
and 200-day moving averages, after payrolls data showed U.S. employers
added 171,000 jobs in October, a hopeful sign for a lackluster economy
that has been a drag on President Barack Obama's re-election chances.
Bullion
hit a two-month low on Friday and is down almost 2 percent this week
for its fourth consecutive weekly decline. The metal has now erased all
its gains after the U.S. Federal Reserve announced its latest
bond-buybacks to boost the job market in September.
