hernan4429/iStock via Getty Images
Gold prices slumped to three-week lows Friday after much stronger than expected U.S. non-farm payrolls data raised fears that the Federal Reserve could keep hiking interest rates.
The U.S. economy created 517K new jobs in January, crushing expectations and marking the biggest increase in six months, while the unemployment rate slid to a 54-year low of 3.4%.
Following the jobs data, the dollar jumped 0.9% to a two-week high against a basket of currencies, making gold a less attractive bet.
April Comex gold (XAUUSD:CUR) -2.3% to $1,886.60/oz, poised for a sixth loss in seven sessions, and March silver (XAGUSD:CUR) -4.3% to $22.59/oz.
ETFs: (NYSEARCA:GLD), (NYSEARCA:GDX), (GDXJ), (IAU), (NUGT), (PHYS), (SLV), (PSLV), (SIVR), (SIL), (SILJ), (SLVP)
Among major precious metals miners: (NEM) -3.8%, (GOLD) -4%, (KGC) -3.7%, (AUY) -3%, (AEM) -3.3%, (AU) -3.3%, (HMY) -3%, (NGD) -3%.
"Today's strong jobs report appears to throw cold water on notions the Federal Reserve will back off on raising interest rates sooner rather than later," as was suggested by this week’s FOMC meeting and Fed Chairman Powell’s press conference, Kitco analyst Jim Wyckoff said.
Gold slipped in the previous session as some investors appeared to take profits after prices touched a nine-month intraday high.