Gold dips on US jobs report, but jumps back heading to six-week gains

Gold dips on US job report, but jumps back heading to six-week gains

Gold climbed a bit on Friday heading for its sixth week of gains as Chinese consumers came back from a weeklong holiday, but took a dip from $1,262.20 to $1,257.40 per ounce as soon as the US payrolls report was published.

The US Labor Department reported this morning the economy added 113,000 jobs in January, far below expectations for 181,000 jobs. Unemployment rate, however, dropped slightly to 6.6% from 6.7%.

Mining fare well last month, with employment rates jumping up. Construction, manufacturing and wholesale trade also grew in January, the department said.

December's jobs gains were revised upward just slightly, to 75,000 from the previous 74,000 estimate, while November's total nonfarm payroll employment increased to 274,000 from 241,000.

Gold recovered quickly and was trading at $1259.30 by 9:03 am ET. The yellow metal has climbed nearly 1.5% this week.