Gold settled nearly 2 percent lower on Friday, enduring its biggest one-day fall in more than a month, as surprisingly strong U.S. jobs data raised the prospect that the Federal Reserve may soon decide to temper its bond-buying stimulus.
A flurry of sell orders in heavy volume sent U.S. gold futures over $10 lower just minutes after the October nonfarm payroll data, setting a weaker tone for the rest of the day. A similar move in gold futures was also seen after Thursday's strong GDP report.
Rallying U.S. equities and a soaring U.S. dollar sent gold to a three-week low, as bullion underperformed silver and platinum group metals.
U.S. job growth unexpectedly accelerated in October, with employers adding 204,000 new jobs, and 60,000 more jobs were created in September and August than previously reported, the Labor Department said.