Gold Falls as Jobs Data Increases Likelihood of Fed Hikes

Investing.com – Gold prices fell Friday as higher-than-expected jobs numbers increased the chance of the Federal Reserve hiking rates this year.

Comex for February delivery slumped 0.7% to $1,286.15 a troy ounce as of 9:11 AM ET (14:11 GMT).

rose by in December, well above forecasts, while the jobless rate unexpectedly rose as more people looked for jobs during the holiday season.

The upbeat data is likely to give the Fed a reason to increase interest rates, which helps increase demand for the U.S. dollar and lowers investor appetite for bullion.

The price of bullion was also pushed down by a sudden rise in the dollar. The , which measures the greenback’s strength against a basket of six major currencies, rose 0.22% to 96.09.

The precious metal usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.

Meanwhile, traders are also looking ahead to comments from at 10:15 AM ET (15:15 GMT). While he is not expected to provide a shift from prior statements, investors will listen closely for any clarification on monetary policy.

Other metals were higher on the Comex, with flat at $15.79 a troy ounce. Among other precious metals, platinum increased 0.7% to $805.20 while palladium rose 0.2% to $1,202.35 an ounce. futures surged 1.5% to $2.61 a pound.

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