Gold prices tumbled on Friday as the dollar firmed against its major counterparts after data showed stronger than expected in U.S. non-farm payroll employment in the month of January.
The dollar index surged to 102.92, gaining nearly 1.2%.
The strong jobs data raised hopes that interest rates would remain elevated for several months.
Gold futures for April ended lower by $54.20 or about 2.8% at $1,876.60 an ounce. Gold futures shed 2.7% in the week.
Silver futures for March ended down $1.210 at $22.405 an ounce, while Copper futures for March settled at $4.0565 per pound, down $0.0345 from the previous close.
Data from the Labor Department showed that non-farm payroll employment soared by 517,000 jobs in January after surging by an upwardly revised 260,000 jobs in December.
Economists had expected employment to increase by 185,000 jobs compared to the addition of 223,000 jobs originally reported for the previous month.
The report also said the unemployment rate edged down to 3.4% in January from 3.5% in December. The dip surprised economists, who had expected the unemployment rate to inch up to 3.6%.
A report from the Institute for Supply Management showed service sector activity rebounded by much more than expected in the month of January.
The ISM said its services PMI jumped to 55.2 in January from a revised 49.2 in December, with a reading above 50 indicating growth. Economists had expected the index to inch up to 50.4
The material has been provided by InstaForex Company – www.instaforex.com
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