Gold's losing streak post US jobs surprise continues

December gold extended losses on Tuesday, falling by as much as $15 an ounce to touch $1,762 an ounce – a two-week low.

A strengthening dollar on the back of positive US employment news out last week continued to add negative pressure on the precious metal.

The better-than-expected non-farm payrolls numbers may mean that the Federal Reserve will end QE3 Infinity – the open-ended third round of quantitative easing in the US to keep interest rates low and flood markets with cheap money – sooner rather than later.

Ahead of the jobs report traders pushed the metal to within sight of 2012 highs of just under $1,800, as loose monetary policy in the US adds to gold's allure as an inflation hedge and storer of wealth amid currency depreciation.


US Labor Dept drops bomb on gold traders, dents QE3 >>

GRAPHIC: Gold's 111% rise from QE1 to QE3 >>