Gold settles lower, posts weekly gains

Gold prices fell on Friday, following the release of data showing continued strength in the US labor market — which reduced expectations for further easing in borrowing costs by the Federal Reserve.

August gold futures fell by 0.84%, or $28.50, to settle at $3,346.60 per ounce. However, they recorded a weekly gain of 0.94%.

The monthly jobs report released today showed that the US economy added 139,000 jobs in May, compared to an upwardly revised 147,000 in April, and above market expectations of 125,000 new jobs for the month.

The data lowered the likelihood of continued Fed rate cuts, especially since the unemployment rate held steady at 4.2%.

Gold prices also faced pressure this week from a decline in the trade risk premium, after the U.S. and Chinese presidents held a phone call to discuss the resumption of negotiations.

In related news, President Donald Trump announced today that his administration officials will meet with Chinese representatives in London next Monday, marking the start of a new round of trade talks.