Investing.com - Gold prices headed lower on Friday as the U.S. jobs report showed that wage inflation accelerated to its fastest pace since April 2009, increasing the odds that the Federal Reserve will follow through on two more interest rate hikes this year.
At 10:48 AM ET (14:48 GMT), gold futures for December delivery on the Comex division of the New York Mercantile Exchange slipped $1.10, or 0.09%, to $1,203.20 a troy ounce, compared to $1,206.70 ahead of the release.
Beyond the solid creation of 201,000 jobs in August, or a jobless rate holding near 18-year lows, the focus was on the 2.9% increase in wage inflation.
The increase in wages is being closely monitored by the Fed for evidence of diminishing slack in the labor market and upward pressure on inflation
Although a quarter-point rate hike was already fully priced in for the Sept. 25-26 meeting, odds for an additional increase in December rose to 76% compared to 70% ahead of the report.
Higher interest rates tend to weigh on demand for gold, which doesn’t bear interest, in favor of yield-bearing investments.
In other metals trading, silver futures gained 0.63% at $14.270 a troy ounce by 10:50 AM ET (14:50 GMT).
Palladium futures rose 1.14% to $973.10 an ounce, while sister metal platinum traded down 1.06% at $782.50.
In base metals, copper advanced 0.51% to $2.650 a pound.