Gold drops 1.3% to record $4,037.3 per ounce
Gold prices fall amid strong US jobs data and expectations that the central bank will focus on inflation.
Translated by Qiyas from الجريدة — Original source
Gold fell 1.3% in spot trading to $4,037.36 per ounce following a U.S. report on non-farm payrolls.
U.S. non-farm payrolls rose more than expected in October, while the unemployment rate dropped to 4.1%, indicating that the labor market remains strong and giving the Federal Reserve (the central bank) greater leeway to focus on inflation driven by the conflict in the Middle East.
The U.S. Bureau of Labor Statistics, part of the Department of Labor, said jobs increased by 165,000 last month, after September’s data was revised upward to 60,000. Economists had expected a gain of 65,000 jobs in a Reuters poll, following earlier data showing an increase of 29,000 jobs in September.
Earlier on Friday, gold declined amid oil price volatility that kept inflation concerns alive ahead of the release of key U.S. jobs data. Nevertheless, the precious metal remained on track for its best weekly performance in over two months.
Brent crude rebounded to reach $100 per barrel, but is heading for a sharp weekly decline, amid expectations of reduced tensions in the U.S.-Iran conflict following the results of the U.S. midterm elections. However, ongoing concerns about supply disruptions from the Middle East continue to support prices.
