Gold Price Falls as US Economy Picks Up

MOSCOW (Sputnik) — Gold futures at New York's Comex were 1.4 percent in the red, falling by over $2 to $1,238.90 per troy ounce by 5:00 a.m. GMT. Gold April 2016 futures were down 1.7 percent, falling from around $1,244 per ounce to $1,239.70 per ounce by 6:30 a.m. GMT.

Thursday's slump comes in a slight reversal of the rally that started in early January and saw gold prices rise from around $1,050 per ounce to over $1,200 per ounce.

The decrease followed Wednesday's news of an upturn in the US economy. According to the Automatic Data Processing (ADP) National Employment Report released on Wednesday, the US economy gained 214,000 jobs in February, with most gains in the construction, trade and transportation and the profession services sectors. In contrast, manufacturing employment fell by 9,000 last month.

Gold is considered a safe haven for investors fleeing risky markets during economic turmoil. Gold prices peaked in the years following the 2008 financial crash, reaching record levels at around $1,800 per ounce in late 2011. The precious metal began to lose value in late 2012 and has followed a fluctuating downward until reaching a multi-year low of $1,060.50 per ounce in December.