Gold slides almost 2% as strong jobs data bolsters Fed taper bets

GOLD - JAKARTA. Gold prices slid to their lowest in more than a month on Friday after a strong U.S. jobs report boosted expectations the Federal Reserve could begin tapering its economic support sooner than previously anticipated.

Spot gold had fallen 1.8% to $1,772.42 per ounce by 9:08 a.m. EDT and was on course for its worst week since mid-June. U.S. gold futures shed 1.9% to $1,774.10 per ounce.

The U.S. non-farm payrolls (NFP) report showed 943,000 jobs were added last month, exceeding expectations for a gain of 870,000.

"The job numbers are hitting gold because they blew away expectations, so the market is anticipating that the Fed's taper date could be brought forward with an announcement in September, a plan outlined in December and the actually tapering in early January most likely," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Fears over the central bank cutting back on its stimulus programme have been brewing in recent days after Fed Vice Chair Richard Clarida and Fed Governor Christopher Waller suggested asset purchase tapering may come sooner.

The dollar and benchmark 10-year Treasury yields also rose after the data, dealing a further blow to bullion's appeal.

Higher interest rates raise the opportunity cost of holding non-interest bearing gold.

But Streible said gold buyers could step in on dips, limiting losses.

"Employment had snapped back today, but we've already seen peak GDP, peak corporate earnings and the economic data is going to be mixed at best going forward, so gold is still pretty good value."

Silver fell 2.4% to $24.52 per ounce and was down more than 3% for the week. Platinum fell 1.3% to $992.34 and was set for its biggest weekly fall since June. Palladium rose 0.5% to $2,660.85 per ounce.