01.11.201918:22:00UTC+00Gold Futures Settle Lower On Strong Jobs Data

Gold prices edged lower on Friday after data from Labor Department showed a stronger-than-expected growth in U.S. jobs in the month of October.

The encouraging jobs data helped ease concerns about the economy and raise speculation that the Fed may pause rate hikes for now.

The dollar index climbed to 97.45 after the release of the jobs report, but retreated slipped to 97.16 before edging up to 97.25, down by about 0.1% from previous close.

Gold futures for December ended down $3.40, or about 0.2%, at $1,511.40 an ounce, off the day's high of $1,519.00 an ounce.

On Thursday, gold futures for December ended up $18.10, or 1.2%, at $1,514.80 an ounce.

For the week, gold futures gained about 0.4%.

Silver futures for December ended down $0.015, at $18.052 an ounce, while Copper futures for December settled at $2.6530 per pound, gaining $0.0150 in the session.

On the economic front, the Labor Department said non-farm payroll employment climbed by 128,000 jobs in October compared to economist estimates for an increase of about 89,000 jobs.

The report also showed substantial upward revisions to job growth in September and August, with revised data showing employment jumped by 180,000 jobs and 219,000 jobs, respectively.

Despite the stronger than expected job growth, the report said the unemployment rate inched up to 3.6% in October from 3.5% in September. The uptick matched economist estimates.

Meanwhile, a report from the Institute for Supply Management showed a continued contraction in U.S. manufacturing activity in the month of October.

The ISM said its purchasing managers index crept up 48.3 in October from 47.8 in September, although a reading below 50 still indicates a contraction in manufacturing activity. Economists had expected the index to rise to 48.9.

In the previous month, the index fell to its lowest level since hitting 46.3 in June of 2009, the last month of the Great Recession.