Futures rising, bad payroll ready to unleash gold

Gold futures gained today (December 7th) as markets anticipated key economic data and prepared to respond to it.

Gold for February delivery shot up $2.20 at $809.30, confirming the upward movement seen by the precious metal late yesterday.

Meanwhile spot gold fell slightly from its $803 per ounce levels later on Thursday, slipping down between a $801.50-802.20 range but holding above the crucial $800 mark.

Mixed fortunes were predicted for the metal, as Michael Kempinski, analyst at Commerzbank, told Reuters: "There's very little physical market demand and not much else to push gold up at the moment."

He added, however: "We're just awaiting the [payrolls] figures, which could spark some upside trade if they are not so good."

The value of the dollar and of US government bonds were steady as markets awaited today's key payroll data, but investors could be keen to buy gold should the dollar tumble following weak employment data.