Gold prices traded higher on Friday, buoyed by the release of a mixed US jobs report while geopolitical worries increased demand for safe haven gold.
Gold for April delivery on the Comex division of the New York Mercantile Exchange added $3.70, or 0.61%, to $1,257.00 a troy ounce by 13:26 EDT. Gold rose to a five-month high of $1272.85 earlier during the session.
Gold prices eased from a five-month high, weighed by a broad based dollar rally, as the US Dollar Index Futures advanced beyond the 101 level, after a mixed US jobs report failed to dampened expectations of a June rate hike.
The Bureau of Labor Statistics reported Friday, Nonfarm payrolls grew by just 98,000 in March, well below expectations of 180,000, but the unemployment rate fell to a 10-year low of 4.5%.
According to investing.com’s Fed rate monitor tool, the probability of traders that expect a June rate hike remained at 58%, unchanged from the previous day.
A sharp rise in U.S. treasury yields added to expectations of a higher interest rate environment, with U.S. 10-Year, up 0.75% to 2.361.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
Gold futures had spiked higher in overnight trade, after news broke that the United States launched cruise missiles at an airbase in Syria.
Meanwhile, the final day of a two-day summit between U.S. President Donald Trump and Chinese President Xi Jinping remained front and center, as a number of sensitive topics are expected to be discussed including North Korea and trade.
Silver futures, lost 0.15% to $18.218, a troy ounce while copper dipped 0.56% to trade at $2.643.
Platinum gained 0.28% to $961.55 while Natural Gas added 1.77% to $3.272.