The gold price fell as much as 1.1% during Asian trading to extend this week’s losses to 2.1%. A surging U.S. dollar and perceived robust U.S. economic data dented gold’s appeal as a hedge against the dollar and geopolitical uncertainty.

Following the Bank of Japans decision to ramp up quantitative easing the dollar has risen to a 7 year high against the weakening Japanese yen. In the last 3 months the dollar has surged over 10% against a broader basket of international currencies.

The gold market responded negatively to positive U.S employment data which suggested the number of Americans out of work has fallen to a 14 year low. With manufacturing and consumer data falling below historic norms many commentators are now questioning the accuracy of the U.S. employment figures.

Assets in the world’s largest gold exchange traded fund, The SPDR Gold Trust, fell to a new 6 year low of 720.62 metric tonnes.

Gold is currently trading at £735.81 per ounce, silver £9.82 per ounce, platinum £761.21 per ounce and palladium £489.68 per ounce. The gold silver ratio currently stands at 74.92.