Gold falls from November 2011 highs on U.S. jobless data

Gold futures fell from 11-month highs after the unemployment rate in the U.S. unexpectedly dropped, easing pressure on the Federal Reserve to expand monetary stimulus. Silver also slid.

The jobless rate in September declined to 7.8 percent from 8.1 percent, government data showed today. Earlier, gold reached a 10-month high close to $1,800 an ounce on speculation that stimulus programs in the U.S., Europe and Japan enhanced the appeal of the metal as an alternative to currencies.

“People are throwing in the towel,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Investors are now speculating on how long the third round” of qualitative easing will continue in the U.S., he said.

Gold futures for December delivery fell 0.6 percent to $1,785.10 at 9:27 a.m. on the Comex in New York. Earlier, the price touched $1,798.10, the highest for a most-active contract since Nov. 9.

The unemployment rate, derived from a survey of households, was forecast by analysts to rise to 8.2 percent.

Silver futures for December delivery declined 0.7 percent to $34.845 an ounce. Yesterday, the metal closed at the highest since March 1.

Through yesterday, silver jumped 26 percent this year, while gold advanced 15 percent.

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