Investing.com – Gold prices were lower on Friday, as the U.S. dollar strengthened after a better than expected jobs report.
Comex for June delivery were down 0.48% to $1,293.90 a troy ounce as of 10:33 AM ET (14:33 GMT).
rose by 223,000 in May, according to official data released on Friday. The data was higher than the consensus estimate for the creation of 189,000 jobs and above the 178,000 positions that the ADP report indicated on Wednesday.
The jobs report is watched closely by the Federal Reserve for indications of rising inflation in wage growth and to measure its key objective, employment.
The Fed raised rates in March and is expected to raise rates twice more, including at its next meeting in June.
Expectations of higher interest rates tend to boost the dollar by making the currency more attractive to yield-seeking investors. Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.
The , which measures the greenback’s strength against a basket of six major currencies, was at 94.25, rising 0.32%.
Gold is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises.
Elsewhere on the Comex, were down 0.11% to $16.440 a troy ounce. Among other precious metals, fell 0.32% to $907.20 while increased 0.28% to $984.40 an ounce. futures gained 0.49% to $3.080 a pound.
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Source: Investing.com
