© Archyde.com. Gold bars in a gold mine in South Africa – Photo from Archyde.com archive.
From Ashita Shivaprasad
(Archyde.com) – They fell more than 1 percent on Friday after strong US jobs data raised fears that the Federal Reserve (the US central bank) would stick to monetary tightening.
By 1421 GMT, it had fallen 1.1 percent to $1,783.41 an ounce, after hitting its highest since August 10 at $1,804.46 earlier in the session.
US gold futures fell 1 percent to $1,797.40 an ounce.
The data showed that US employers hired more workers than expected in November and raised wages despite growing recession fears.
“With the release of US jobs data which was much stronger than expected… what we’re seeing is concern that the Federal Reserve may need to push ahead with expected interest rate increases,” said David Meagher, director of metals trading at High Ridge Futures.
After the report was issued, it rose 0.6 percent against the major rival currencies, making gold more expensive for holders of other currencies. Yields also rose.
However, gold prices are set to record gains for the second week in a row, and have risen 1.6 percent so far this week.
As for other precious metals, it fell in spot transactions by 1.2 percent, to $ 22.48 an ounce. While platinum fell 3.2 percent to $ 1007.92, but it is expected to achieve weekly gains. It also lost 3.3 percent to $1,877.50.
(Reporting by Marwa Salam and Rehab Alaa for the Arabic Bulletin – Edited by Ali Khafaji)