Gold prices continued to fall Friday, in spite of a U.S. employment report for February that failed to meet elevated expectations, prompting a drop in the dollar and Treasury yields.
The U.S. Labor Department data, which showed U.S. non-farm payrolls rose 235,000 last month, beat official forecasts but was not enough to satisfy those whose expectations had been boosted by a strong private payrolls number earlier in the week.
What the figures did accomplish was to shore up prospects for the Federal Reserve to hike interest rates this month, however. Anticipation of a March hike has put gold on track for its biggest weekly loss in four months..
The metal hit a low of $1,194.55 U.S. an ounce on Friday, after slipping below $1,200 an ounce in the previous session for the first time since Jan. 31.
Spot gold crawled ahead 0.1% $1,199.61 U.S. an ounce, while U.S. gold futures for April delivery decreased 0.3% to $1,199.60.
Gold is highly sensitive to rising U.S. interest rates as these increase the opportunity cost of holding non-yielding bullion, while boosting the buck, in which it is priced.
Elsewhere among metals, silver gained 0.3% at $16.90 U.S. per ounce, after also hitting its lowest since late January at $16.78 U.S.. Palladium rose 0.03% at $746.50 U.S. per ounce.
Platinum rose 0.5% on Friday at $936.80 U.S. However, platinum has already fallen nearly 6% this week, having earlier touching its lowest since Jan. 4 at $928.50 U.S.
