Investing.com – Gold prices fell Friday, but remained on track to snap a three-week losing streak amid dollar weakness, which also drew a strong rebound in the price of other metals.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $3.00, or 0.23%, to $1,255.90 a troy ounce.
The dollar was set for a weekly slump as a mixed U.S. jobs report dampened investor expectations for a faster pace of rate hikes.
The U.S. economy added 213,000 jobs in June, above forecasts for 200,000 new jobs, while the unemployment rate unexpectedly rose to 4%, and Average hourly earnings grew 0.2%, undershooting economists' forecast for a 0.3% increase.
"The softer average earnings indicator is likely to catch more attention as it highlights a still tame wage inflation environment," said Audrey Childe-Freeman, chief strategist at consultants FX Knowledge. "That could lead some market participants to start questioning whether we will see two Fed rate rises in second after all."
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.34% to 93.81.
Dollar-denominated assets such as gold are sensitive to moves in the dollar. A fall in the dollar makes gold cheaper for holders of foreign currency and increases demand for the precious metal.
In other metals trade, market participants appeared to take profits on their bearish bets on metal prices, which rebounded from multi-month lows. Some said that the impact of U.S. and China trade tariffs on markets – which kicked in on Friday – had been priced in.
Copper prices, which sunk to their lowest in more than one year Thursday, fell 0.25% to $2.82, and zinc prices rose 1.99% to 2,748.75.
Aluminium prices rose 0.31% to 2,087.45 amid investor expectations for a decline in output following a statement from China earlier this week pledging to shut down some smelters in bid to firm up environment control.
Silver futures fell 0.17%% to $16.06 a troy ounce, while platinum futures rose 0.70% to $874.30.