Gold futures settled lower on Friday for the first time in six sessions after a better-than-expected U.S. employment report buoyed the dollar and dulled some of the metal’s investment appeal.
For the week, however, gold scored a gain as investors viewed the metal as a safer investment against a backdrop of worries over China’s economy and a recent plunge in its stock market.
February gold fell by $9.90, or 0.9%, to settle at $1,097.90 an ounce on Comex. The commodity saw a weekly climb of 3.6%, which was the largest since the week ended Aug. 21, 2015, according to FactSet data.
A closely watched jobs report showed the U.S. economy added a better-than-expected 292,000 jobs in December, while the unemployment rate stayed at 5%, helped extend gold’s decline.
A strong employment report could give the Federal Reserve confidence to raise interest rates at a quickened pace–a move that could diminish the appeal of gold, which doesn’t offer a yield.
Rounding out action in the metals, March silver fell 42.6 cents, or 3%, to $13.918 an ounce, but it still saw a weekly gain of 0.8%.
March high-grade copper ended flat at $2.022 a pound, down roughly 5.3% for the week. April platinum settled at $878.70 an ounce, up $1.20, or 0.1%, for the session though down about 1.6% for the week. March palladium shed 60 cents, or 0.1%, to $493.60 an ounce, ending the week with a 12.2% loss.
Source : Market Watch