Investing.com – Gold prices rose on Friday as the greenback pared back earlier gains after September’s payroll numbers came in lower than expected.
Comex for December delivery rose 0.52% to $1,207.80 a troy ounce as of 10:20 AM ET (14:20 GMT),.
The U.S. economy created fewer jobs than expected in September, but unemployment reached a 48-year low, indicating the economy was nearing full employment.
The disappointing payrolls numbers pushed the dollar lower, despite increased expectations of a Federal Reserve rate hike in December.
Gold usually falls as the dollar rises, as it 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 and cheaper when it falls.
The , which measures the greenback’s strength against a basket of six major currencies, increased 0.16% to 94.95. The yield on the benchmark Treasury note jumped to 3.227%, a level not seen since 2011, but soon leveled back to 3.208%.
Higher interest rates increase bond yields, making non-interest bearing gold less attractive to investors. They also tend to boost the dollar, making dollar-priced gold more expensive for holders of other currencies.
Other metals were lower on the Comex, with rising 0.55% to $14.670 a troy ounce. Among other precious metals, rose 0.22% to $826.30, while increased 1.46% to $1,060.80 an ounce. futures lost 0.34% to $2.768 a pound.
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Source: Investing.com
