Gold dips despite Friday's jobs report; Fundamentals seen bearish for the metal

Gold futures were lower in early U.S. trade Monday, after Friday's jump, when it logged a healthy 2% gain in the aftermath of a disappointing jobs report.

December Comex gold was last down 0.04% at 1.136.10.

December Comex silver was meanwhile higher 1.72% at 15.525.

Gold, along with other commodities, edged higher after Friday’s jobs report showed that the U.S. economy added 142,000 jobs in September, well below of economists’ estimate of 200,000. The data led analysts to scale back expectation for a Fed rate increase this year.

Ultraloose interest rates for longer are great for gold because the metal doesn’t offer interest. Postponing an increase in rates also can sap the strength of the U.S. dollar, making dollar-denominated commodities more appealing to buyers using other currencies.

Despite gold’s Friday bounce, some analysts foresee some "obstacles" for the commodity's rise:

“Lack of inflation, emerging financial stability in Europe, and robust economic activity in the US are all bearish for gold. Expect further downside, if the miners start to hedge,” Morgan Stanley’s commodity research group said in a Monday note.

Other market players have a more upbeat outlook for the yellow metal, which had enjoyed some haven bids as concerns about global growth rocked markets in August:

“…the prospect of the Fed being forced to delay its first rate increase until 2016 could see gold break back up to its May highs of $1,200,”  said Angus Nicholson, market analyst at IG Group, a currency and commodity services provider.