By Mark Decambre
Gold futures sank early Friday following a stronger-than-expected nonfarm-payrolls report that might provide the Federal Reserve sufficient evidence to consider resuming interest-rate hikes soon after a roughly eight-month pause.
The U.S. created 255,0000 new jobs in July, outpacing expectations of 185,000, and marking the second-straight healthy jobs figure in a row after a report for May showed that just 11,000 jobs were created.
The Labor Department’s report puts pressure on precious metal because it offers the Fed fodder to lift interest rates at its next policy-setting meeting in September or December. Higher rates can boost the dollar and make dollar-priced assets more expensive to buyers using other currencies.
A gauge of the dollar, the ICE U.S. Dollar Index DXY, +0.70% rose 0.4%, following the jobs data. Stock futures also vaulted higher after the report was released, signaling demand for havens was fading and risk appetite was on the rise.
December gold GCQ6, -1.55% was down $15.30, or 1.1%, at $1,352.40 an ounce in most recent trade. The turn lower erased a modest weekly gain for the yellow metal, pushing it down 0.2% for the week.