Yellow Metal Plunges Amid Strong US jobs Data .

Gold futures tumbled by almost 2 per cent in the domestic market on Friday tracking weakness in the yellow metal overseas as better than expected US jobs data infused optimism over the health of the world’s biggest economy, eroding the safe haven appeal for the bullion, while keeping the door open for further tightening of interest rates by the US Federal Reserve later this year following a maiden hike in borrowing costs since 2006 in December, dimming the lure for gold as a store of value.

The US economy added 215,000 jobs in March, compared to a revised 245,000 in February, and topping analysts’ estimates of 205,000. Meanwhile, a US factory gauge expanded for the first time in seven months in March, also offering evidence of strength in the American which may convince the Fed to proceed with gradual rate hikes.Read More - “ Mcx tips ”

Gold, a non-interest bearing asset, tends to lose its luster, in a rising interest rate scenario.Gains in equities amid enhanced risk appetite also dimmed the lure for the yellow metal as an alternative asset.

The precious metal may script a rebound today after Friday’s heavy losses as traders weigh whether the Fed will raise interest rates in the near-term.

At the MCX, Gold futures for April 2016 contract closed at Rs 28,040 per 10 gram, down by 1.78 per cent after opening at Rs 28,561, against the previous closing price of Rs 28,549. It touched the intra-day low of Rs 27,970.