Gold prices fell over 1% on Friday due to a stronger-than-expected US jobs report, which dampened hopes for Federal Reserve rate cuts this year. Spot gold fell 1.1% to $3,316.13 an ounce, but rose 0.8% for the week so far. U.S. gold futures settled 0.8% lower at $3,346.60.
The Labor Department report showed that non-farm payrolls increased by 139,000 in May, compared with estimates for a rise of 130,000. The unemployment rate stood at 4.2%, in line with estimates. This suggests that the Fed will stay on hold for a little while, with only one more cut in view by December.
Gold is often considered a hedge against inflation and geopolitical uncertainty; however, higher interest rates reduce its appeal. Spot silver fell 0.5% to $35.96, after hitting a 13-year high earlier. Platinum rose 2.5% to $1,158.20, the highest since March 2022, and palladium was up 3.9% to $1,045.45. Both metals were on track for weekly gains.
