Gold futures have turned slightly positive Friday after a mixed jobs report from the U.S., but the metal isn't up much as it still is on the defensive after a massive slide the previous session.
The most-actively traded contract, for August delivery, was recently up 50 cents at $1,207.20 U.S. an ounce on the Comex division of the New York Mercantile Exchange. The contract was $3.60 U.S. lower shortly before the U.S. payrolls report.
Government data showed the jobless rate unexpectedly edged down to 9.5% in June from 9.7% the previous month but nonfarm payrolls fell by a more-than-expected 125,000 last month, as 225,000 government workers that were hired for the 2010 census in recent months lost their temporary jobs and only 83,000 private-sector jobs were added.
Although there were some negatives to the payrolls data, gold isn't benefiting much from its traditional role as a safe-haven investment because traders remain defensive after gold prices plummeted Thursday.
On Thursday, gold futures lost nearly $40 U.S. to close at their lowest point in more than a month amid poor economic data as investors preferred the perceived safety of U.S. Treasurys. It dropped to $1,196 U.S. in electronic trading after hours, and Friday's intraday low is $1,198.80 U.S.
Before Thursday, the August contract hadn't been below the psychologially key $1,200 U.S. mark since June 4. It hasn't closed below that level since May 25.
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