Investing.com - Gold prices climbed to a one-year high on Friday, as data showing that the U.S. economy created less jobs than expected this month sent the greenback broadly lower.
Comex gold futures were up $7.57 or about 0.57% at $1,329.56 a troy ounce by 08.50 a.m. ET (12:50 GMT), their highest since September 2016.
The greenback weakened broadly after the U.S. Labor Department said the economy added 156,000 jobs in August, disappointing expectations for an increase of 179,000. The unemployment rate ticked up to 4.4% this month from 4.3% in July, confounding expectations for an unchanged reading.
The report also showed that average hourly earnings only rose 0.1% in August, compared to expectations for a 0.2% gain.
The weak data came after a string of mixed U.S. economic reports on Thursday had already dampened optimism over the economy. It was also expected to lower chances of another rate hike by the Federal Reserve in December.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.42% at 92.19, off session highs of 92.80 and at its lowest level since Tuesday.
Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.
The precious metal also found some support amid fresh diplomatic turmoil between the U.S. and Russia on Friday.
Tensions re-emerged after the U.S. has told Russia to close its consulate in San Francisco and buildings in Washington and New York that house trade missions in retaliation for Moscow cutting the U.S. diplomatic presence in Russia.
Following the decision, Russian Foreign Minister Sergei Lavrov said that Moscow would respond harshly to U.S. measures designed to hurt it.
Elsewhere on the Comex, silver futures gained 0.9 cents or about 0.53% to $17.57 a troy ounce.