Gold falls to strong payroll data that drive risk assets

Gold prices fell on Friday after the US labor market report. It would be better than expected, which triggered high-risk assets.

At 11.38 am ET (1638 GMT), gold futures fell 1.3% to $ 1,463.65 a troy ounce, which lost almost all the gains obtained in a week of unequal economic data, and in a context of uncertainty in what It concerns the trade war between the United States and China. Cash gold fell 1.1% to $ 1,459.08.

The US economy UU. He added 266,000 jobs in November, which is explained, in part, by the return to work of those affected by the General Motors (NYSE: GM ) strike in October. The unemployment rate fell to 3.5% and the average weekly earnings growth increased at an annual rate of 3.1% from 3.0% in the previous two months.

In total, the report made the Federal Reserve less likely to reduce interest rates again in the short term, and bond yields increased between 3 and 4 basis points along the yield curve. Higher returns make interest-free gold less attractive in comparison.

Employment data turned to a market that was otherwise ready to realize some of its darkest fears.

Germany’s industrial production fell 5.3% year-on-year in October, the country’s statistics office said Friday. That is the largest year-on-year fall since 2009. Meanwhile, Canada’s labor market had its worst month since January 2018, with a 71,000 fall in employment.

Elsewhere, silver futures also fell sharply, losing 2.5% to $ 16.60 an ounce, while platinum fell 0.5% to $ 896.10 an ounce. By contrast, copper futures , traditionally a reliable indicator of industrial activity, reached their highest point in a month with a gain of 1.9% to $ 2.71 per pound.