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Submitted by unname2 on Sun, 12/06/2009 - 17:15
Gold prices have slumped after surprisingly good US unemployment data sent the US dollar higher, making gold a less attractive investment.

The dollar rose on the back of the data which showed that the US unemployment rate fell in November to 10%, down from 10.2% in October.

11,000 jobs went over the month - the smallest number since the recession began in December 2007 and far fewer than the 130,000 expected by most analysts.

After figures showed the US jobless rate falling, the dollar gained 2% on the Japanese yen and 1.3% on the Euro.

Gold has hit a number of record highs in recent weeks as the dollar weakened due to low interest rates in the US.

Both the dollar and gold are seen as safe investments, but investors have preferred gold in recent months due to the weak dollar.

VOVNews/BBC

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