Gold Falls After Strong US Jobs Report Lifts Dollar And Treasury Yields, Despite Weekly Gains

(MENAFN- Zex PR Wire) LONDON, United Kingdom, November 6, 2026, ZEX PR WIRE, Gold prices declined on Friday after stronger-than-expected US employment data increased expectations that the Federal Reserve could keep interest rates higher for longer. The stronger labour-market figures supported the US dollar and government bond yields, creating pressure on the precious metal during the latest trading session.

Spot gold fell 0.3% to approximately $4,074.36 per ounce by 1:54 p.m. Eastern Time, after declining more than 1% earlier in the session to a low of $4,033.29. US gold futures for December delivery settled 0.9% lower at $4,074.90 per ounce. Despite the daily decline, spot gold remained up approximately 5.2% for the week.

Employment Data Changes Interest-Rate Expectations

The US employment report showed that employers added 165,000 jobs in October, substantially exceeding the 65,000 increase forecast by economists. The unemployment rate also declined to 4.1% from 4.2% in September.

The stronger figures increased expectations that the Federal Reserve could raise interest rates again in December. Higher interest rates generally make interest-bearing assets more attractive relative to gold, which does not generate regular income.

Reuters reported that market participants were pricing in an approximately 81% probability of a December rate increase following the employment data, compared with 72.8% beforehand. This reflects financial-market expectations rather than an official commitment by the central bank.

Dollar Strength Adds Pressure to Bullion

The US dollar strengthened approximately 0.7% during the session, reaching its highest level since October 29. Because gold is priced internationally in dollars, a stronger US currency can make the metal more expensive for buyers using other currencies.

Rising Treasury yields added another source of pressure by increasing the relative return available from government securities. These factors contributed to the decline even though gold had recorded substantial gains earlier in the week.

Physical Demand Provides a Counterpoint

Lower prices encouraged buying among Indian retail consumers ahead of Diwali, according to Reuters. Physical demand can provide support during periods of price weakness, particularly around important seasonal purchasing periods.

Silver also moved higher, gaining 0.8% to approximately $52.18 per ounce. Platinum advanced 1.6% to around $1,541.42, while palladium declined 0.6%. All three metals were positioned for weekly gains despite their different daily performances.

What Precious-Metal Investors Will Monitor

The outlook for gold will depend partly on the relationship between inflation, employment and interest-rate expectations. A stronger dollar and rising yields can create pressure, while geopolitical uncertainty and physical demand may provide support.

The latest session demonstrates that gold can decline even during a strong weekly performance when economic data changes expectations about monetary policy. Investors will continue watching US inflation figures, Treasury yields and central-bank commentary for further direction.

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