BENGALURU: Gold fell to a one-month low on Friday despite weaker-than-expected US jobs data, extending a correction from last month’s stellar rally as investors booked profits while geopolitical risks eased. Spot gold fell 0.1% to $2,300.38 per ounce as of 1:45 p.m. ET (1745 GMT), and logged its second consecutive weekly fall.
US gold futures settled little changed at $2,308.6.
Prices quickly gave up gains after jumping as high as $2,320.78 immediately after the release of data showing US nonfarm payrolls increased by 175,000 jobs last month, lower than economists’ forecast of 243,000.
“Gold’s initial surge on the Goldilocks employment report attracted a fair amount of profit-taking, which suggests bulls are growing more cautious after April’s remarkable rally and a rather ordinary response after Powell’s friendly comments on Wednesday,” said Tai Wong, a New York-based independent metals trader.
Though the jobs data reinforced expectations that the Federal Reserve will start cutting interest rates this year, which should be supportive for zero-yield bullion, this prompted investors to switch to riskier assets instead.
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