Gold slips as solid jobs data spurs rate hike bets

Gold prices fell on Friday, pressured by a stronger dollar and as better-than-expected U.S. jobs data raised concerns of aggressive monetary policy tightening

Spot gold fell 0.7% to $1,855.20 per ounce by 11:13 a.m. ET. U.S. gold futures were also down 0.7% to $1,859.00

Data showed U.S. employers hired more workers than expected in May and maintained a fairly strong pace of wage increases, signs of labor market strength

“If the Federal Reserve sees the economy continuing to remain stable in the midst of its rate raising efforts, they might feel more emboldened to raise rates at a faster pace,” said David Meger, director of metals trading at High Ridge Futures

Higher U.S. interest rates increase the opportunity cost of holding gold, which bears no interest, while boosting the dollar in which bullion is priced

The dollar edged up 0.1%, while U.S. benchmark 10-year yields were close to the two-week high touched earlier in the session

Gold prices are set to log a 0.2% gain for the week, with the metal hitting its highest since May 9 at $1,873.79 earlier in the session

The medium-term outlook for gold is positive, said Jigar Trivedi, a commodities analyst at Mumbai-based broker Anand Rathi Shares

“Chinese market has reopened hence we don’t rule out retail participation and market is discounting June and July rate hike events,” Trivedi added

Spot silver fell 1.4% to $21.98 per ounce, down 0.5% for the week

Platinum fell 0.2%, to $1,020.77 per ounce yet was up 7.1% for the week, the most since June 2021

Palladium fell 2.5% to $2,002.18 per ounce and was down around 3% for the week