Job growth in the United States accelerated sharply in January, with 517,000 jobs added, almost twice as much as in December. The unemployment rate stood at 3.4%, a 53.5-year low, pointing to the persistence of a tight labor market.
“These data will strengthen the case that the Fed should continue to be a bit more aggressive going forward,” said Edward Moya, a market analyst at OANDA.
The dollar was up 0.9%, hitting a three-week high earlier in the session, making gold a less attractive bet. The 10-year Treasury yield also rose.
Earlier in the week, the Fed raised rates a quarter of a percentage point after a year of higher rate hikes and Fed Chairman Jerome Powell warned of further tightening of monetary policy.
Gold is very sensitive to rate increases in the United States, as they increase the opportunity cost of holding bullion, which does not earn interest.
In other precious metals, spot silver fell 4.8% to $22.34 an ounce; platinum fell 4.5% to $975.48; and palladium fell 2.9% to $1,606.01. All three closed the week down.
Source: Ambito
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