Gold remained below $4,100 an ounce Friday after U.S. hiring topped forecasts and boosted market pricing for a December Federal Reserve rate hike, though bullion was up 5.2% for the week.
The Bureau of Labor Statistics (BLS) said nonfarm payrolls rose by 165,000 in October, and the unemployment rate was 4.1%. Economists surveyed by Reuters had forecast a 65,000 increase. The BLS revised August payroll growth up by 53,000, to 186,000, and September’s by 31,000, to 60,000, adding 84,000 jobs to its earlier estimates. October’s gain exceeded the average of 48,000 jobs over the prior 12 months. EconoTimes previously covered the payroll report and revisions.
Spot gold fell 0.3% to $4,074.36 an ounce at 1:54 p.m. ET (18:54 UTC), Reuters reported. The metal had earlier reached $4,033.29. The 5.2% rise put bullion on track for its biggest weekly advance since August, Reuters said.
Reuters, citing CME FedWatch, said market pricing put the chance of a December rate increase at 81%, compared with 72.8% before the jobs report. That pricing reflects expectations, not a Federal Reserve decision. The BLS also said average hourly earnings rose 14 cents, or 0.4%, to $38.00 in October and were up 3.1% from a year earlier.
Reuters linked the pressure on gold to a stronger dollar and rising Treasury yields. Because bullion pays no interest, higher yields can make interest-bearing assets more attractive by comparison. Tai Wong, an independent metals trader, told Reuters gold was “trying to claw back higher” after the employment report.
The BLS scheduled its November Employment Situation report for Dec. 4 at 8:30 a.m. ET (13:30 UTC).
