On Friday, gold prices declined, retreating from the prior sessions, one-month peaks as the greenback supported against a currency basket after U.S. jobs data presented a slowdown in hiring in December, however, a pickup in wage development.
Delivery of gold for February settled down 0.73% at $1,172.65 on the Comex division of the New York Mercantile Exchange.
For the week, the metal was still 1.97% higher, its best weekly performance in two months, assisted by a broad weakening of the greenback earlier in the week.
On Friday, the Labor Department stated the U.S. economy added 156,000 jobs in December, falling short of economists prediction for employment growth of 178,000.
The report also presented that the yearly rate of wage progress increase to 2.9% in December from a year before, the strongest since 2009.
The employment statistic showed that the economy is improving enough for the Fed Reserve to keep pushing up interest rates.
For the year 2017, the Fed Reserve has indicated that three quarter-percentage-point interest rate upsurges are on the cards.
Higher rates increase the greenback by making the currency more striking to yield-seeking investors.
The U.S. dollar index, which gauges the greenback’s strong point against a trade-weighted basket of six major currencies, jumped 0.77% to 102.17 on late Friday.
On Tuesday, the index had declined in the prior two sessions after hitting a 14-year peak of 103.82.
Both a strong greenback and higher interest rates are normally bearish for gold, which is denominated in dollars and fights to compete with yield-bearing assets when borrowing costs increase.
Somewhere else in precious metals trading, palladium completed at a five-week peak of $758.35 late Friday.
“The metal, which is used in vehicle catalysts to clean exhaust emissions ended the week with gains of around 11% after data showing U.S. sales of new cars and trucks hit a record high in 2016,” according to the reports.
Silver declined 0.73% at $16.52 a troy ounce late Friday, after hitting peaks of $16.76 in the prior session, its highest since December 15.
Copper increased 0.18% at $2.54 a pound and ended the week up 1.6%.
Platinum declined 0.32% on the day at $972.85 an ounce,however, increased approximately 7.5% for the week. On Thursday, the metal hit its highest since November 11 at $979.75.
During the week ahead, investors will be looking forward to U.S. economic reports, particularly Friday’s retail sales numbers for December.
On Thursday, investors will also be viewing an appearance by Fed Chair Janet Yellen and speeches by a handful of other Fed Reserve officials during the week.
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