Gold Falls Over 3% on Strong Dollar, Higher Treasury Yields

Gold prices declined on Friday after initially rising due to data showing slower US job growth in September. However, the precious metal still posted a weekly loss of over 3% due to a strong dollar and higher Treasury yields.

The spot price of gold fell by 0.8% to $4,145.68 an ounce, while US gold futures settled 0.9% lower at $4,162.30 an ounce. The US Labor Department's employment report revealed that nonfarm payrolls increased by only 29,000 last month, below the expected gain of 90,000.

The weaker-than-expected inflation data and opposition from senior policymakers to another interest rate hike in October contributed to the decline in gold prices. Traders now see a 22% probability of a US interest rate hike this month, down from around 70% earlier in the week.