Gold prices fell Friday after an encouraging jobs report from the U.S> Labor Department helped lift stocks, taking some of the shine from the yellow metal.
Gold for April delivery shed $19.70, or 1.6%, to $1,243.10 U.S. an ounce after barely moving at all on Thursday. March silver lost 27 cents, or 1.5%, to $16.92 U.S. an ounce.
Data showed the U.S. added 257,000 new jobs in January, kicking off the year solidly, amid evidence and influx of hiring in the past year may finally be pushing wages higher. Average hourly earnings had the biggest gain in more than six years.
The dollar shot higher as non-farm payroll news came out. A stronger dollar tends to weigh on dollar-denominated assets, and tarnish gold’s allure as a safe-haven asset for investors.
For the week, gold is down about 3%. What support that has been coming through for the market has likely been underpinned by strong exchange-traded-fund buying this week, according to analysts. Gold has seen modest buying from China, typically a significant buyer of commodities, the analysts point out.
