Daily Gold Update

Source: Marketwatch

New York— Gold and silver futures fell sharply Friday as a better-than-expected U.S. employment report boosted hopes for an economic recovery and made precious metals a less attractive investment. Nonfarm payroll fell 345,000 in May, the Labor Department reported, a drop that was much less than the 500,000 expected by analysts surveyed by MarketWatch. The decline in payrolls was the smallest since September. A stronger dollar also weighed on commodities. Gold for June delivery fell $19.50, or 2%, to $961.70 an ounce on the Comex division of the New York Mercantile Exchange. The more active August contract also lost $19.70, or 2%, to end at $962.60.

Meanwhile, July silver skidded 50.7 cents, or 3.2%, to $15.388 an ounce. "Sell on the news," said George Gero, a precious-metals trader for RBC Capital Markets. "The jobs data are better than expected, helping reducing people's worries." For the week, gold ended down 1.8%, while silver lost 1.4%. See full story.