Gold prices rose on Friday after a slightly weaker-than-expected US jobs report pushed the dollar and Treasury yields lower, offering some respite to bullion which was still on track for its worst week in six.
Nonfarm payrolls increased by 187,000 jobs last month, the Labor Department said in its closely watched employment report. Economists polled by Reuters had forecast a gain of 200,000 jobs.
Spot gold was up 0.4 percent at $1,940.86 per ounce. Bullion, however, was down 0.9 percent so far this week.
US gold futures settled 0.4 percent higher at $1,976.10.
“The jobs report has allowed the market to propose that the Federal Reserve is not as likely to raise interest rates. As a result, we’ve seen bond yields drop along with the dollar and that is certainly supporting the price of gold,” said David Meger, director of metals trading at High Ridge Futures.
Following the data, the dollar fell 0.5 percent against its rivals, making gold less expensive for other currency holders. Benchmark US 10-year yields retreated from a nine-month high.
According to the CME’s FedWatch Tool the probability that the Fed leaves rates unchanged at its September 19-20 meeting is now around 85 percent from around 78 percent just prior to the data coming out.
