Gold futures ended lower on Friday, down more than 1% for the week. A stronger-than-expected U.S. jobs report drove up the dollar and Treasury yields as the data laid some groundwork for a potentially more aggressive Federal Reserve interest-rate response this year.
- Higher interest rates make gold less attractive to investors because it does not pay interest
- Gold is set to end this week 1.1 percent lower, after rising in six out of the last seven weeks and hitting its highest in 17 months last week at $1,366.07
- Holding gold offers a degree of insurance if the broader market suffers a correction
The hawkish reading of the data is proving to be a trigger point for more downside pressure in gold in the short-term, said Suki Cooper, precious metals analyst at Standard Chartered Bank.
Original Source: https://www.reuters.com/article/global-precious/precious-gold-prices-drop-as-dollar-strengthens-after-u-s-jobs-data-idUSL8N1PS47Z