Gold fell hard on Friday after stronger-than-expected U.S. payrolls data for June but rebounded quickly
U.S. gold futures for August delivery, which fell as low as $1,336.30 U.S. an ounce following the jobs data, were down 60 cents Friday afternoon at $1,361.50 U.S.
Spot gold was trading nearly flat at $1,359.82 an ounce, after it hit a low of $1,335.68 an ounce in the wake of data.
The U.S. created 287,000 jobs in June, massively topping analyst expectations.
The national unemployment rate rose slightly more than expected in June, to 4.9% according to figures released Friday by the U.S. Bureau of Labor Statistics.
Fed futures contracts, which suggested before the jobs report that traders saw only a 19% or so chance of a U.S. rate hike by December, now suggest a higher chance.
Gold is sensitive to higher rates, which increase the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
