Gold closes with 2% weekly loss

Gold futures on the COMEX division of the New York Mercantile Exchange closed with modest loss on Friday, as traders reacted to a stronger-than-expected U.S. jobs report for November. The most active gold contract for February delivery fell 2.9 dollars, or 0.23 percent, to settle at 1,229.0 U.S. dollars per ounce. Statistics show gold prices lost 1.7 percent for the week, tracking the most-active contracts. According to market analysts, the upbeat jobs report raised expectations that the U.S. Federal Reserve may soon scale back its monthly bond-buying program, which pressured the gold trading on the day. The U.S. economy added 203,000 jobs in November and the unemployment rate fell to 7 percent from 7.3 percent in October, the Labor Department said Friday. Economists surveyed by MarketWatch had expected a gain of 180,000 nonfarm jobs and an unemployment rate of 7.2 percent. Since September 2012, the Federal Reserve has been buying 85 billion dollars a month in Treasurys and mortgage-related assets in an effort to boost the U.S. economy. The stimulus program has contributed to weakness in the U.S. dollar which has, in turn, provided support for gold. Silver for March delivery fell 4.7 cents, or 0.24 percent, to close at 19.523 dollars per ounce.