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Gold drops for 2nd day after US data signals stronger economy
[SINGAPORE] Gold dropped for a second day after US jobs and manufacturing data added to speculation the economy is gaining momentum, damping demand for the metal as an alternative asset.
Bullion for immediate delivery fell 0.2 per cent to US$1,219.64 an ounce at 9:29 am in Singapore, from US$1,222.60 on Friday, when it fell 0.8 per cent, according to Bloomberg generic pricing.
The metal jumped 16 per cent in the first three months of the year, the biggest quarterly surge since 1986, as the Federal Reserve kept rates steady after an increase in December. US manufacturing expanded for the first time in seven months and more workers than expected were added to nonfarm payrolls in March, according to data released Friday.
"Any lingering speculation about an imminent US recession was dealt a blow by March US data," analysts including Daniel Hynes at Australia & New Zealand Banking Group Ltd wrote in a report Monday.
"Gold declined after the strong US payrolls report."