Gold prices slide 1% as strong US jobs data clouds interest rate cut bets

Gold prices fell on Friday as the dollar and Treasury yields strengthened after traders lowered bets for US interest rate cuts to materialise by March next year following a stronger-than-expected jobs data.
 

Spot gold fell 1 per cent to $2,008.79 per ounce by 9:55 am ET (1455 GMT), and was down nearly 1 per cent for the week so far. US gold futures also lost 1 per cent at $2,025.10.
 

The dollar index firmed 0.2 per cent, making bullion more expensive for overseas buyers. Also, 10-year Treasury yields 

ticked higher.
 

US job growth accelerated in November while the unemployment rate fell to 3.7 per cent, suggesting financial market expectations of a rate cut early next year were probably premature.
 

Traders had earlier priced in about a 60 per cent chance of a March start to Fed rate cuts, but after the jobs data, pared that to just under 50 per cent, with May now a more likely starting point.
 

Traders will seek further confirmation from the Federal Reserve meeting scheduled on December 12 to 13.