The gold price sank to its lowest level in 15 months as U.S. job growth beat expectations. The U.S. dollar rose on the news causing the silver and platinum price to fall to multi year lows. The gold price has failed to reignite despite airstrikes in the Middle East and the continuing unrest in Ukraine.
A strengthening U.S. dollar is placing considerable pressure on the gold price. In the last four months the dollar has rallied over 8% against a basket of the world leading currencies. With sentiment in the metals market extremely low a number of analysts are now expecting the price to rebound.
The dollar strengthened after the Labour Department confirmed that non payroll employment rose by 248,000 in September leaving the percentage of Americans out of work now at 5.9%
With the majority of China on holiday last week it was not surprising that physical demand failed to pick up as the price declined.
Gold is currently trading at £746.85 per ounce, silver £10.62 per ounce, platinum £758.78 per ounce and palladium £470.05 per ounce.