Gold Sell-Off as Bar Lowers on Employment

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Gold is on a 7th day of straight declines as speculation for a rate hike climbs ahead of U.S. Non-farm Payrolls release. Earlier in Asian session, St. Louis Fed President James Bullard said in an interview with Reuters thatslowing monthly job growth (NFP) is natural at this stage of economic recovery and that should not deter the Fed from rate hike consideration.

This supported Fed Chair Janet Yellen’s testimony to US House yesterday that a December hike remains a live possibility. Investors were quick to dump more gold at signs that the bar on an acceptable NFP number (for a hike) has lowered. Next support at 1098.9 may not hold out for long.

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