New York gold futures ended lower on Friday (Oct. 7) under pressure following the U.S. released higher-than-expected non-farm payrolls. This will allow the US Federal Reserve (Fed) to accelerate further interest rates.
The COMEX (Commodity Exchange) gold contract will be delivered in December. It was down $11.5, or 0.67%, at $1,709.3/ounce. But it still closed up 2.2% this week.
Silver metal contract for delivery in December It was down 40.5 cents, or 1.96%, to close at $20.255 an ounce.
Platinum contract delivered in Jan. It was down $3.9, or 0.42%, at $917.9 an ounce.
Palladium contract delivered in December It was down $84.20, or 3.7%, at $2,191.30 an ounce.
The US Department of Labor said on Friday that Non-farm payrolls increased by 263,000 in September. The unemployment rate fell to 3.5 percent from 3.7 percent in August.
Market analysts stated that Strong US employment data indicates that the labor market is in better shape than the market expected. and will encourage the Fed to continue raising interest rates
Gold contracts were hit by the dollar index and rising US bond yields. After the disclosure of employment information
A stronger dollar will reduce the attractiveness of gold. by making gold contracts more expensive for holders of other currencies. As the rebound in US Treasury yields increases the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
Investors raised expectations that The Fed will raise interest rates by 0.75% at its monetary policy meeting in November. This will be the fourth consecutive 0.75% interest rate hike following rising 0.75% in June, July and September.
Meanwhile, investors will keep an eye on the minutes of the Fed’s September meeting on Oct. 12 and the consumer price index (CPI) on Oct. 13. next