Disappointing US jobs data pushes gold price lower in euro

The gold price in euros fell by one percent this afternoon to €1,090 per troy ounce. The decline is the result of a disappointing Jobs Rate from the US, making the euro worth more against the dollar. The exchange rate rose by about one percent to almost $1.10 per euro.

In the fourth quarter of last year, the U.S. economy grew at an annual rate of 2.2 percent, but due to this poor jobs figure, the growth rate for the first quarter of this year could be lower. This has also raised more doubts about a rapid interest rate hike by the US central bank.

Jobs figure disappointing

In March, 126,000 new jobs were added, according to the U.S. Bureau of Statistics, far fewer than the 245,000 new jobs expected by a panel of economists. March's poor jobs number follows a string of very good jobs numbers.

Not only was the jobs figure for the month of March disappointing, the figures for January and February were also revised sharply downwards. January's figure was corrected to 201,000 new jobs, down 38,000 from the original figure. February's jobs figure is also losing some luster, as it was reduced from +295,000 to +264,000. This brings the average monthly job growth over the past three months to 197,000.

Gold price in euro lower due to exchange rate effect

Service economy

New jobs were added in March in services and health care in particular, while jobs were lost in the mining and oil industries. The latter is probably related to the fall in oil prices, which has made the extraction of oil and gas from shale rock less profitable. Employment in construction and manufacturing remained virtually unchanged in March.

The strong dollar is unfavourable for employment in the US, as Noticed President Obama as well. The stronger the dollar is against other currencies, the more attractive it becomes to import goods instead of producing them yourself. At the same time, it weakens the U.S.'s export position, making it more difficult to produce for foreign countries.

The decline in the Gold price makes it more attractive to Europeans buy gold. Hollandgold has the golden Maple Leaf This week it was extra competitively priced.