Gold futures dropped by more than $40 an ounce on Friday as a bigger-than-expected climb in new jobs last month contributed to a rise in the dollar and U.S. equities, luring investors away from the precious metal.
Gold for August delivery lost $41.60, or 3.3%, to $1,210.30 U.S. an ounce on the Comex division of the New York Mercantile Exchange.
Tracking most-active contracts, gold was poised for a loss of more than 1% for the week, according to data from FactSet. Prices closed the second quarter with a 23% slide.
The U.S. Federal Reserve's quantitative-easing program has helped support gold as QE tends to pressure the dollar and can lead to inflation. Gold is often seen as a hedge against inflation.
Fed Chairman Ben Bernanke last month said the central bank may slow the pace of bond purchases this year if the economy continues to show improvement. The Fed currently buys $85 billion a month in U.S. Treasurys to aid economic growth.
On Friday, the ICE dollar index climbed, contributing to the weakness in gold prices.
Dollar-denominated commodities tend to come under pressure when the greenback rises, as it makes them more expensive to holders of other currencies.
Joining gold in its losses, September silver sank by $1.01, or 5.1%, to $18.69 U.S. an ounce. September copper futures fell 12 cents, or 3.8%, to $3.06 U.S. a pound.
Platinum for October delivery dropped $32.20, or 2.4%, to $1,314.60 U.S. an ounce, and September palladium lost $16.65, or 2.4%, to $669.05 U.S. an ounce.
