Gold prices faced downward Friday after the release of stronger-than-expected U.S. jobs data.
Spot gold was down 0.5% at $1,858.60 U.S, per ounce at first glance Friday. Gold futures for August delivers dipped 0.6% to $1,860.80 U.S..
The U.S. economy added 390,000 jobs in May, according to the Bureau of Labor Statistics. That’s more than economists had expected. The unemployment rate, meanwhile, held at 3.6% — just above the lowest level since December 1969.
The release sent Treasury yields higher, along with the U.S. dollar. The dollar index traded 0.2% higher at 101.99.
Signs of a tight labour market could keep the Fed’s foot on the pedal to cool demand. Higher U.S. interest rates increase the opportunity cost of holding gold, which bears no interest, while boosting the dollar in which bullion is priced.
Despite Friday’s declines, gold was still headed for a slight weekly gain. Spot prices were up about 0.3% for the week, while futures had gained nearly 0.6%.
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