Gold pared early gains and drifted down to end lower on Friday, as the United States dollar rebounded after early weakness.
The dollar bounced back following data from the U.S. Labor Department that showed a stronger than expected work development in August and a boost in typical hourly employee incomes raising prospects of walking in interest rates this month. The dollar index, rose to 95.35, from a low of around 94.85 earlier in the day.
Disputes between the U.S. and its trade partners continue to hurt investor sentiment. Today, U.S. President Donald Trump apparently told a columnist for The Wall Street Journal that he was “still bothered by the regards to U.S. trade with Japan.”
Trump supposedly announced today that his administration intends to go on with tariffs on US$ 200 billion worth of Chinese imports. He supposedly included, “And I dislike to say that, however behind that, there’s another US$ 267 billion ready to go on brief notification if I want. That completely alters the equation.”
Gold futures for December ended down $3.90, or 0.3%, at $1,200.40 an ounce. On Thursday, gold futures wound up $3.00, or 0.25%, at $1,204.30 an ounce. For the week, gold futures shed about 0.5%.
Silver futures for December ended down $0.011, at $14.170 an ounce, while Copper futures declined by $0.0140, to $2.6225 per pound.
The Labor Department’s report revealed that non-farm payroll work in the United States rose up by 201,000 tasks in August after climbing up by a downwardly revised 147,000 tasks in July. Economists had expected work to increase by about 191,000 jobs compared with the addition of 157,000 jobs originally reported for the previous month.
In spite of the more powerful than expected task growth throughout the month, the joblessness rate held at 3.9% in August compared with expectations for a drop to 3.8%.
The joblessness rate came in flat as the household survey measure of employment revealed a depression of 423,000 individuals and the labor force diminished by 469,000 persons.
The report also stated average hourly employee profits increased by $0.10 or 0.4% to $27.16, reflecting the most significant month-to-month boost seen last December. The yearly rate of typical per hour worker revenues development subsequently sped up to 2.9% in August from 2.7% in July.
“This report is strong throughout and with the economy most likely to grow more than 3% again in the 3rd quarter of this fiscal year, it will keep the Fed hiking rates of interest with another relocation in September with a further boost in December,” said James Knightley, Chief International Financial Expert at ING.
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