Gold bounces after US jobs misses
Gold closed above $1,300. CNBC's Bertha Coombs reports holdings in the world's largest gold-backed ETF are hitting 4-year lows.
As gold pays no interest, the fall in returns from U.S. bonds is seen as positive for the metal.
Gold, seen as a hedge against inflation, had gained in recent years as central banks acted to boost their economies. Prices touched an all-time high of $1,920.30 in 2011.
In recent weeks, the Fed has said it would begin tapering its $85 billion monthly bond purchases if the U.S. economic recovery retained momentum, prompting investors to monitor housing and jobs data closely.
The next data market participants will watch is the U.S. ISM non-manufacturing PMI later in the day.
Speculators cut long gold positions
Hedge funds and money managers trimmed their gold net longs and raised their bullish position in silver futures and options, a report by the U.S. Commodity Futures Trading Commission showed on Friday.
(Read More: The four reasons why hedge funds are selling gold)
Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.26 percent to 918.64 tonnes on Friday, touching fresh four-year lows.
"Should prices trade below $1,300 an ounce, an additional sizeable leg of ETP (exchange-traded product) holdings becomes loss-making," Barclays Capital said in a note.
Silver fell 0.3 percent to $19.84 an ounce. It reached a one-week high of $20.27 on Friday.
Platinum was up 0.3 percent at $1,448.74 an ounce and palladium lost 0.2 percent to $727.97 an ounce.
Source: http://www.cnbc.com/id/100938109
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