FX.co ★ Gold review for February 2, 2011

Growing US private sector payrolls has made gold even less attractive as shelter asset, even though the US dollar has advanced amid current instability in Egypt.
By the end of the COMEX trading April’s gold futures dropped $8.20, or 0.6%, to $1.332.10 for the troy ounce.
Better-than-expected economic data, released on Wednesday, decreased attractiveness of gold as shelter asset even more, proving once again that world economic recovery is continuing.
US private sector payrolls increased by 187.000 in January, according to Automatic Data Processing Inc. and Macroeconomic Advisers consulting company. Economists were expecting 143.000.
Stronger dollar also affected the price of gold by denominating it in dollars and making it more expensive for other currencies, which resulted in lower demand.