Gold Futures Decline on Strong U.S. Jobs Data

Key summary

Gold prices in the New York market fell on Friday, November 6th, as stronger-than-expected U.S. employment data boosted the U.S. dollar and U.S. Treasury yields. Analysts said the employment report caused an immediate drop in gold prices. The U.S. Department of Labor reported that non-farm payrolls increased more than expected in October, while the unemployment rate fell to 4.1%, reflecting a strong labor market. Data from the CME's FedWatch tool showed that investors now see an 81% probability that the Federal Reserve will raise interest rates at its December meeting, up from 72.8% before the report's release. The interest rate hike increases the cost of holding gold, as it is a non-yielding asset. Analysts also noted that two Federal Reserve officials have supported a gradual interest rate hike to control inflation that is above the target.