Gold prices moved lower on Friday and are heading for a second straight weekly decline as a stronger U.S. dollar and rising Treasury yields reduced demand for the precious metal. Investors are also waiting for the latest U.S. jobs report, which could influence expectations for future Federal Reserve interest-rate decisions.
Spot gold fell 0.4% to $4,161.58 per ounce, bringing its loss for the week to around 3%. U.S. gold futures for December delivery also slipped 0.3% to $4,191.10 per ounce.
The U.S. dollar is on track for weekly gains, making gold more expensive for buyers using other currencies. Meanwhile, yields on 10-year and 30-year U.S. Treasury bonds climbed to their highest levels since 2002, increasing the attractiveness of interest-bearing assets compared to gold.
Markets are closely watching the September non-farm payrolls report for signals about the Federal Reserve’s next move. Expectations for a rate hike later this month have dropped sharply to about 25%, down from roughly 70% earlier in the week. However, traders still see a higher probability of another increase in December, currently around 79%.
Higher interest rates generally weigh on gold because it does not generate interest or income. Recent U.S. economic data has also pointed to a resilient labor market, with both unemployment claims and layoffs remaining low.
Among other precious metals, silver declined 0.2% to $60.71 per ounce, platinum fell 0.3% to $1,718.80, while palladium gained 0.6% to $1,177.80 per ounce.
