Gold prices slipped more than 1 percent on Friday after a stronger-than-expected US jobs report dampened hopes for imminent Federal Reserve rate cuts this year, while silver soared to its highest level since 2012.
Spot gold fell 1.1 percent to $3,316.13 an ounce, but rose 0.8 percent for the week so far.
US gold futures settled 0.8 percent lower at $3,346.60.
A US Labor Department report showed non-farm payrolls increased 139,000 in May, compared with estimates for a rise of 130,000, according to economists polled by Reuters. The unemployment rate stood at 4.2 percent, in line with estimates.
Data came in line with estimates, which is a negative for gold as the data suggests that the Fed is going to stay on hold for a little while, Marex analyst Edward Meir said.
Fed policymakers are seen as waiting until September to cut rates, with just one more cut in view by December, based on trading in short-term interest-rate futures, which also showed traders backing away from bets that would pay off if the US central bank delivered a third rate cut by the end of the year.
Gold is considered a hedge against inflation and geopolitical uncertainty. But higher rates reduce the appeal of bullion as it yields no interest.
On the trade policy front there was little clarity after the highly anticipated call between US President Donald Trump and Chinese leader Xi Jinping on Thursday.
“These are very difficult negotiations and they’re not going to be solved just on the phone. If the tariff headlines become negative, that’s bullish for gold,” Meir added.
Spot silver fell 0.5 percent to $35.96, after hitting a more than 13-year high earlier.
