Gold Spirals 4% Lower as Greenback Strengthens (GG,ABX)

by Chip Brian

12/4/2009-The front month contract on Comex Gold spiraled 4% lower Friday after the US dollar jumped riding the coattail of an upbeat US jobs report.

After the US Department of labor said the unemployment rate eased to 10.0% and nonfarm payrolls showed a much better-than-expected drop of 11,000, the dollar surged versus other major currencies, sending commodity prices lower.

gold1Gold for December delivery fell $48.60 on the NYMEX to $1,168.80 per troy ounce.

Gold is coming off a fresh high yesterday, closing above $1,226 per ounce, up 40% this year.

Meanwhile, other precious metals also declined considerably as the December contract for silver fell 60.6 cents, or 3.2% to $17.496 an ounce and the January contract on platinum fell $44, or 2.9%, to $1,450 an ounce on the NYMEX.

Shares of Goldcorp (NYSE:GG) are trading 7.8% lower to $41.73 while Barrick Gold Corp. (NYSE:ABX) is off 10.3% to $42.00.