FX.co ★ Gold Retreats on Strong US Jobs Data

Gold prices retreated toward $4,050 an ounce on Friday as the US dollar strengthened following a stronger-than-expected nonfarm payrolls report, bolstering expectations that the Federal Reserve could raise interest rates at its policy meeting next month. The US economy added 165,000 jobs in October, far surpassing market forecasts of 65,000, while the unemployment rate unexpectedly fell to 4.1%. Employment figures for the prior two months were also revised higher by a combined 84,000. Reinforcing the hawkish outlook, average hourly earnings rose 0.4%, above expectations of a 0.3% increase, and a renewed rise in crude oil prices further stoked inflation concerns. Despite Friday’s pullback, gold remained more than 4% higher for the week, underpinned by safe-haven demand after a sweeping Democratic victory in the US midterm elections prompted investors to rotate out of AI stocks and into defensive assets.