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Gold Falling after Positive Jobs Number

Gold is down in early trading Friday. The precious metal is currently at 1207.70–down 40.20. The SPDR Gold Shares (NYSE: GLD) are down more than 3 percent.

The metal was down during overnight trading after accommodative language from ECB President Mario Draghi indicated that the bank would continue to prop up the economy for as long as it takes. Investors see this as a blunt and direct comment that brought ease to the Eurozone. This is in sharp contrast to China and U.S. Central Bank officials who have struggled to give the markets language that removes uncertainty.

The selloff nearly doubled following the 8:30 a.m. EDT announcement of the June non-farm payrolls report that came in above expectations north of 190,000. This sent equity markets higher with 10 year treasury yields also rising. The jolt to global and currency markets sent gold lower.

Respective analyst, Dennis Gartman said earlier this week that he believes gold has printed a bottom and that significant upside is likely.

David Darst, Chief Investment Strategist for Morgan Stanley (NYSE: MS) said, “Gold is like religion. You believe in religion or you don’t believe in religion. And that’s one of the things. Gold is down because three things that are up: interest rates are up, stocks are up, and the dollar is up.”

Disclosure: At the time of this writing, the author had no position in gold.

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