Gold drops 1% as strong US payrolls boost dollar, yields
GLD•GLD•GLD•GLD•Gold fell 1% on Friday after stronger-than-expected US payrolls lifted the dollar and Treasury yields, but bullion was up 4.5% for the week. US unemployment fell to 4.1%, and traders saw a 74.8% chance of a Fed rate hike in December.
Spot gold fell 1% to $4,047.10 an ounce by 8:46 a.m. ET, after touching $4,033.29 earlier. US gold futures for December delivery dropped 1.4% to $4,057.20. Despite the decline, spot gold was up 4.5% for the week, its strongest weekly gain since late August.
US nonfarm payrolls increased more than expected in October, while the unemployment rate fell to 4.1%. The dollar rose 0.7% to its highest level since October 29, and 10-year Treasury yields climbed. Traders saw a 74.8% chance of a Fed rate hike in December, up from 72.8% before the jobs report.
Lower prices encouraged Indian retail gold buying ahead of Diwali. Silver rose 0.3% to $51.92 an ounce and platinum gained 0.5% to $1,524.03, while palladium fell 1.6% to $1,015; all three were poised for weekly gains.
