Gold Set to Record Weekly Loss Amid Dollar Strength

Gold prices fell yesterday, giving up earlier gains as a stronger U.S. dollar and higher U.S. Treasury yields weighed on the non-yielding metal, keeping it on track to record a weekly loss.

Spot gold fell 0.9 percent to $4,140.06 per ounce, retreating about 3.4 percent since the start of the week. U.S. gold futures ended trading down 1 percent at $4,162.30.

Gold declined after rising more than 1 percent earlier in the session following data showing that U.S. job growth slowed more than expected in September.

The employment report, released by the Department of Labor on Friday and closely watched, showed that non-farm payrolls increased by 29,000 last month after August data were revised down to indicate a gain of 133,000 jobs. Economists surveyed by Reuters had expected a rise of 90,000 jobs, following an initial report of 162,000 added in August.

Han Tan, chief market analyst at BNP Paribas, said, “Investors betting on gold may be refraining from excessive optimism at present, recognizing that the Federal Reserve remains inclined toward monetary tightening.”