2024.02.0218:03:00UTC+00Gold Futures Settle Lower As Dollar Rises On Upbeat Jobs Data

Gold prices fell on Friday as the dollar climbed higher and treasury yields moved up after data showing bigger than expected addition in U.S. non-farm payroll employment in the month of January dashed hops of an early rate cut by the Federal Reserve.

The dollar index surged to 104.04, gaining nearly 1% following the upbeat jobs data from the Labor Department. The yield on 10-year U.S. Treasury note surged to 4.054% today.

Gold futures for April ended down $17.40 at $2,053.70 an ounce.

Silver futures for March ended lower by $0.440 at $22.796 an ounce, while Copper futures settled lower by $0.0320 at $3.8215 per pound.

The Labor Department's data today showed non-farm payroll employment spiked by 353,000 jobs in January compared to economist estimates for an increase of about 180,000 jobs.

The report also showed significantly stronger than previously reported job growth in December, with employment surging by 333,000 jobs during the month compared to the jump of 216,000 jobs that had been reported.

The Labor Department also said the unemployment rate in January came in unchanged from the previous month at 3.7%. Economists had expected the unemployment rate to inch up to 3.8%.

A report from the Commerce Department showed new orders for U.S. manufactured goods rose in line with estimates in the month of December, rising by 0.2%, after surging by 2.6% in November.

Revised data from the University of Michigan showed U.S. consumer sentiment improved by slightly more than previously estimated in the month of January. The report said the consumer sentiment index for January was upwardly revised to 79.0 from the preliminary reading of 78.8. Economists had expected the reading to be unrevised.