Gold futures bounced near one-week lows, witnessing a surge in the buying after the US non farm payrolls data showed a that the hiring is cooling off in the world's largest economy. The metal had plummeted to lows of near $1625 per ounce in the morning trades, its one week low but edged up in Europe and recorded quick gains after the non farm payrolls. The US economy created just 115,000 jobs in April as hiring slacked off for a second straight month, according to the government's latest employment figures. The unemployment rate fell slightly to 8.1% from 8.2%, but the decline stemmed almost entirely from an increase in the number of people who stopped looking for work. Some 342,000 people dropped out of the labor force, the Labor Department reported today. Gold has mostly weakened after hitting highs above $1670 per ounce earlier this week as a rally in the US dollar following weak Eurozone manufacturing PMI took a toll. Traders also worried about a less than expected pick up in Indian demand during the Akshya Tritia festival in end April. The commodity is currently trading at $1637, up $2.20 per ounce on the day. MCX Gold futures for June are quoting at Rs 29185, down Rs 12 per 10 grams on the day. Prices had rallied to a high of Rs 29269 per 10 grams earlier in the day. Spot prices are closing in to Rs 30000 mark.
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