Daily Gold Update

Source: Marketwatch

New York— Gold futures were slightly lower in U.S. midday trade Friday after swinging between gains and losses following the biggest drop in nonfarm payrolls in five years. Gold for April delivery fell $2.80 to $974.30 an ounce on the New York Mercantile Exchange, extending a $11.40 drop Thursday. In the clearest suggestion yet of a recession, the Labor Department reported that U.S. nonfarm payrolls fell by 63,000 in February, the second straight decline in employment. It was the largest drop in payrolls since March 2003 and dashed economists' surveyed expectations for a gain of about 20,000.

"This is bad, but not as bad as will get in the coming months," said Kathy Lien, chief strategist at Forex Capital Markets LLC, in a research note. "This seals the fate for the Fed rate decision in less than two weeks — they will have no choice but to cut interest rates by 75 basis points," she said. "We expect the labor market to continue to worsen." See full story.