NEW YORK: Gold prices slipped on Friday, retreating from a near-four month high, after robust US jobs data fanned concerns that the Federal Reserve might stick with its aggressive monetary policy tightening. Spot gold fell 0.4% to $1,794.96 per ounce by 2:21 pm ET (1921 GMT), after earlier hitting its highest since Aug. 10 at $1,804.46.
US gold futures settled down 0.3% at $1,809.6.
Data showed US employers hired more workers than expected in November and raised wages despite mounting worries of a recession. Additionally, Chicago Fed President Charles Evans stated at an event that there could be “a slightly higher peak rate of the funds rate, even as we likely will step down” the pace of rate hikes from 75 bps.
Fed funds futures prices still implied a 75% chance of the central bank raising its policy rate by 50 basis points to a 4.25%-4.5% range in mid-December.
Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion.
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