Gold futures settled higher Friday, trimming their loss for the week as the US dollar and Treasury bond yields eased after the release of the monthly jobs report.
America’s jobless rate fell to 4.6%, its lowest level since 2007, but that was more down to a weakening in the participation rate (meaning more people stopped looking for work).
But there was again relatively strong job growth continued, with the economy adding 178,000 new jobs in the month, against a forecast for around 180,000.
Wage growth slowed to an annual 2.5% from 2.8% in October (which was the highest for several years), but economists explained that was because the collection day of the 15th of the month fell a day after the week the data was collected in the November survey, so many employers estimated their wage payments.
If it is again weak in December, then economists say there could be a problem.
But the jobs report was seen as nailing the likelihood for the second Federal Reserve interest-rate hike in a year when the central bank the week after next.
Asian trading will be awaiting the details of the Italian referendum due from midday onwards. A no vote will see gold come back into vogue for punters.
Comex February gold futures rose $US8.40, or 0.7%, to settle at $US1,177.80 an ounce.
That was small comfort for gold bugs after November’s 8% tumble which was the worst one-month percentage loss since June 2013.
For the week, prices lost less than 0.1% from the settlement of the most-active December contract a week ago. The February contract was down near 0.3% for the week.
The yield for the 10-year Treasury note was at 2.38% compared with around 2.45% Thursday which was the highest since July 2015.
The ICE U.S. Dollar Index which measures the greenback against a half-dozen rivals, fell 0.7%. Rounding out action in metals, Comex March silver futures rose 32.6 cents, or 2%, to $US16.832 an ounce.
It was up about 2.3% from the most-active contract a week ago.
And Comex March copper fell 1.8 cents, or 0.7%, to $US2.625 a pound, with prices roughly 1.6% lower on the week.
