Gold heads for weekly drop as strong dollar, elevated Treasury yields weigh
GLD•Spot gold fell 0.9% to $4,140.06 an ounce and was down about 3.4% for the week, as a strong dollar and elevated Treasury yields weighed on prices. U.S. jobs data showed payrolls rose by 29,000 in September, while traders cut bets on an October Fed rate hike.
1. Gold reverses earlier gains
Spot gold fell 0.9% to $4,140.06 per ounce by 2:33 p.m. EDT and was down about 3.4% for the week. U.S. gold futures settled 1% lower at $4,162.30. The dollar edged lower on Friday but was headed for a weekly gain, while 10- and 30-year Treasury yields had reached their highest levels since 2002 on Thursday.
2. Jobs data shifts rate bets
Gold had gained more than 1% earlier after data showed U.S. nonfarm payrolls rose by 29,000 in September, below economists’ forecast of 90,000. Traders saw about a 22% chance of a U.S. rate hike this month, compared with around 70% earlier in the week.
3. Other metals also fall
Silver fell 0.8% to $60.36 per ounce, platinum declined 2% to $1,692.90, and palladium slipped 0.5% to $1,165.75. All three were poised for weekly losses.
