Gold Price Ends Day, Week Lower, As Dollar Surges On July Jobs Report

By Mark DeCambre Markets MarketWatch Pulse

Gold futures settled firmly lower on Friday as the dollar jumped after a key report on payrolls in July showed stronger-than-expected job creation. December gold fell $9.80 , or 0.8%, to finish the session at $1,264.60 an ounce. A gauge of the U.S. dollar, the U.S. ICE Dollar Index rose 0.8%, coming off a 15-month low, and weighing on commodities, like gold, priced in the currency. The moves came after a report from the Labor Department showed that the U.S. added a better-than-expected 209,000 new jobs in July, more than most economists were banking on. The unemployment rate fell back to a 16-year low of 4.3%. The labor report underlined what has been a healthy pace of job growth, but also may offer the Federal Reserve little cause to delay lifting interest rates as it seeks to normalize monetary policy. The one-two punch of higher rates and a stronger greenback can serve as a headwind to assets like gold that don't bear a yield. For the week, the buck finished down 0.4%.

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