Gold Erases Its 2014 Gains After U.S. Employers Add Jobs

[Purveyor]

By Nicholas Larkin and Joe Deaux Oct 3, 2014 9:05 AM ET

Gold erased this year’s gains after U.S. employers added more jobs in September than forecast, stoking speculation that the Federal Reserve will move closer to raising interest rates.

Futures for December delivery fell as much as 1.4 percent to $1,198.40 an ounce in New York, the lowest since Dec. 31 and falling below $1,200 for the first time this year. A decline in 2014 would cap the first back-to-back annual losses for the metal since 1998. Prices tumbled 28 percent last year, the most in three decades.

An accelerating American economy means investors are shunning gold even after the U.S. expanded sanctions against Russia and ramped up its military campaign to combat Islamic State in Iraq. Rising interest rates reduce gold’s allure because the metal generally only offers investors returns through price gains, while a stronger dollar typically cuts demand for a store of value.

“Strengthening payrolls are going to add to the perception that the Fed is going to raise rates sooner,” Charlie Bilello, who helps oversee $220 million as director of research at Pension Partners LLC in New York. “The perception is that a more hawkish Fed is negative for gold.”

more...

http://www.bloomberg.com/news/2014-10-03/gold-futures-erase-2014-gains-after-u-s-jobless-rate-declines.html

[Demeter]

1. CORRECTION: PAPER gold loses its gains

The gold market-makers have been flooding the market with naked shorts: promises to deliver gold at a future date, gold which they DO NOT OWN, which is what makes it naked. And speculators, in the belief that when the contract is due, they will get an increase in their redemption, are buying the paper. They know that even the biggest bank cannot keep gold down.
If the issuing bank doesn't redeem in gold, but pays money it doesn't have, the US treasury will bail them out. If it has to go buy gold....oh, well!

This suppresses the price of gold futures, which should NEVER be confused with the cost of actual gold in the hand.

[Wellstone ruled]

2. J.P.Morgan doing their best to cheat

unsuspecting ignorant folks out of their money. CME allows this shit to happen all the time. Remember the DOT Bomb's of the late 80's and 90's,got to love all the naked shorts. Same bunch of crooks.