Gold rebounds as weak job data spur speculation over stimulus

Gold futures on the COMEX division of the New York Mercantile Exchange rebounded Friday as weaker- than-forecast gains in U.S. payrolls revived prospects for an extension of economic stimulus by the U.S. Federal Reserve. The most active gold contract for December delivery rose 13.5 dollars, or 0.98 percent, to settle at 1,386.5 dollars per ounce. Market analysts say Friday's job data makes it clear that the U.S. economy is still weak and needs economic support, and the investors believe that the Fed may have to delay the tapering, which is supportive to gold trading. Employers added 169,000 workers after a revised increase in July of 104,000 that was fewer than initially estimated, U.S. Labor Department figures showed. Gold fell 18 percent this year through Thursday, partly due to concerns that signs of accelerating growth could prompt the Fed to curb bond purchases as soon as this month. U.S. Fed officials, who are debating whether the U.S. economy is improving enough to warrant curbing its 85 billion U.S. dollars of monthly bond purchases, are scheduled to meet for two days through Sept. 18. The U.S. dollar declined Friday, following the release of employment data, helping to lure more investors to the precious- metals market. Silver for December delivery rose 63.6 cents, or 2. 73 percent, to close at 23.891 dollars per ounce.