Gold Logs Worst Daily Loss In 10 Weeks After Stellar Jobs Report

By Markets MarketWatch Pulse

Gold futures notched a hefty loss Friday, tumbling the most in about 2 1/2 weeks following a stronger-than-expected nonfarm-payrolls report that might provide the Federal Reserve evidence to lift benchmark interest rates sooner than later. Higher rates can boost the value of the dollar and undercut the appeal of commodities priced in the currency, making them more expensive for buyers using other monetary units. A rate hike also diminishes the appeal of owning metals, which don't offer a yield. December gold finished off $23, or 1.7%, toe settle at $1,344.40 an ounce, marking its worst one-day drop since May 24, according to FactSet data. Friday's sharp fall turned a modest weekly gain for gold into a roughly 1% weekly decline.

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