Gold (XAU/USD) fell below the key $2,000 per ounce threshold on Friday, sinking to $1,995.28 by late afternoon as the US dollar climbed against major currencies. The greenback rallied after stronger-than-expected US nonfarm payrolls data for November signalled resilience in the labor market.
The Labor Department reported that payrolls increased by 199,000 last month, exceeding economists’ forecasts for a 180,000 rise. The jobless rate also dropped to 3.7% in a show of continued tightness.
The better-than-expected figures led traders to pare back expectations for interest rate cuts by the Federal Reserve starting in early 2024. This supported the dollar and weighed on non-yielding gold.
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Determined selling pressure has prevented the precious metal from sustaining gains above $2,000 despite cooling inflation and recession worries. Opportunistic investors are curbing prices.
