Gold fell before U.S. payrolls data that may show employers added more workers last month, boosting the case for an increase in borrowing costs in the largest economy as the dollar headed for a seventh weekly increase.
Bullion for immediate delivery lost as much as 0.2 percent to $1,203.51 an ounce and traded at $1,204.06 at 10:01 a.m. in Singapore, according to Bloomberg generic pricing. Prices fell 0.3 percent yesterday after the European Central Bank said that it wouldn’t add to bullion reserves.
Improvements in the U.S. economy are spurring speculation that the Federal Reserve will start raising interest rates next year, cutting demand for the metal as other central banks weigh increases in stimulus. A Fed survey on Dec. 3 showed widespread gains in employment in industries from aerospace to finance. The metal remains 3.1 percent higher this week, the most since March, after surging on Dec. 1 as energy prices rebounded.
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