Gold prices gained on Friday as the U.S. dollar and Treasury yields slipped after weak U.S. jobs data cemented expectations that the Federal Reserve is done raising interest rates.
U.S. job growth slowed more than expected in October, while wage inflation cooled, pointing to an easing in labor market conditions. Data showed employers added 150,000 jobs in October, below the 180,000 expected by economists. “If the labour market starts to deteriorate, the Fed will be unable to continue a hawkish path. The data cements the idea of a Fed pause, which is helping gold,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago. Higher rates increase the opportunity cost of holding zero-yield bullion.