Gold may extend November’s 6 percent slide – the worst monthly loss since June – if Friday’s U.S. jobs data beats forecasts, increasing the odds of that the Federal Reserve may exit its stimulus program sooner than anticipated, according to CNBC’s survey of strategists, analysts and traders.
Economists expect the U.S. economy to have created 185,000 jobs in November, down from 204,000 jobs in October, according to a Reuters survey of economists. Barclays’ economists expect payrolls gains of 200,000 to help push unemployment lower to a post-crisis low of 7.1 percent.
“It’s all about payrolls, which in my opinion will surprise to the upside, hence dollar positive, gold negative but it’s unlikely that the Fed will taper this December – give them another month,” said Sankalp Shangari of Shangari Ventures, a Singapore-based commodities trading, advisory and debt raising firm.
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