US jobs data push gold lower as December rate bets rise
Global gold prices fell as strong US hiring lifted the dollar, while traders priced an 81% chance of a Federal Reserve rate rise in December.
- Stronger-than-expected US jobs data for October caused gold prices to fall by strengthening the US dollar and increasing Treasury yields.
- The robust jobs report increased traders' expectations for a Federal Reserve interest rate hike in December, with the probability rising to 81%.
- The prospect of higher interest rates makes non-interest-bearing gold a less attractive investment and more expensive for buyers using other currencies.
Spot gold fell 0.3% in US trading on Friday (November 6, 2026) as stronger-than-expected American jobs data lifted the dollar and Treasury yields, reinforcing expectations that the Federal Reserve could keep interest rates higher for longer.
Spot gold stood at US$4,074.36 an ounce at 1.54pm US Eastern time (6.54pm GMT). Bullion had earlier dropped more than 1% to an intraday low of US$4,033.29.
US gold futures for December delivery settled 0.9% lower at US$4,074.90 an ounce.
December Fed rate-rise odds climb to 81%
Traders priced an 81% chance of a Federal Reserve interest-rate increase in December, up from 72.8% before the US employment report, according to CME Group’s FedWatch tool.
US non-farm hiring exceeded expectations in October, while unemployment declined to 4.1%. The resilient labour market gave the Federal Reserve greater scope to focus on inflation arising from the Middle East conflict.
Two Federal Reserve officials also backed small, gradual rate increases to bring above-target inflation under control.
The US dollar gained 0.7% to its highest level since October 29, making dollar-priced gold more expensive for buyers using other currencies. The benchmark 10-year US Treasury yield also rose.
Higher US interest rates increase the opportunity cost of holding gold, which pays no interest, reducing bullion’s appeal relative to interest-bearing investments.
Brent crude was heading for a sharp weekly decline amid expectations that the US-Iran war could ease following the US midterm election results. Persistent concerns about Middle Eastern oil supplies nevertheless continued to support crude prices.
Gold retains 5.2% weekly gain despite daily decline
Spot gold remained up 5.2% for the week, putting bullion on course for its strongest weekly performance since August despite the day’s fall.
Independent metals trader Tai Wong said gold had dropped sharply after a US employment report that showed strength across all measures, but was attempting to recover. “This is a litmus test for this week’s rally,” Wong said.
Lower gold prices encouraged retail buying in India ahead of Diwali. Gold had previously touched US$3,869.85 an ounce on October 30, its lowest level in a year.
Other precious metals were also heading for weekly gains. Spot silver rose 0.8% to US$52.18 an ounce and platinum gained 1.6% to US$1,541.42 an ounce, while palladium fell 0.6% to US$1,024.59 an ounce.
