New York gold futures closed lower on Friday (Oct 7) under pressure after the US released higher-than-expected non-farm payrolls. This will allow the US Federal Reserve (Fed) to further accelerate interest rates.
The COMEX (Commodity Exchange) gold contract will be delivered in December. It was down $ 11.5, or 0.67%, to $ 1,709.3 / ounce. But this week it still closed up 2.2%.
Silver Metal Contract for December Delivery It fell 40.5 cents, or 1.96%, to close at $ 20,255 an ounce.
Platinum Contract Delivered in January It was down $ 3.9, or 0.42%, to $ 917.9 an ounce.
Palladium Contract Delivered in December It was down $ 84.20, or 3.7%, to $ 2,191.30 an ounce.
The U.S. Department of Labor said Friday Nonfarm payrolls rose 263,000 in September. The unemployment rate fell to 3.5 percent from 3.7 percent in August.
Market analysts have said that Solid employment data in the US indicates that the job market is in better shape than expected. and it 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. 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% during November’s monetary policy meeting. This will be the fourth consecutive 0.75% interest rate hike after the 0.75% increase in June, July and September.
Meanwhile, investors will be keeping an eye on the minutes of the September Fed meeting on October 12 and the Consumer Price Index (CPI) on October 13.
