Gold prices fell Friday after a better-than-expected U.S. jobs report cemented expectations the Federal Reserve would implement steep interest rate hikes and lifted the dollar and bond yields.
Spot gold was down 0.9% at $1,695.40 per ounce. Prices have risen about 2% so far this week.
U.S. gold futures slipped 1% to $1,703.40.
"The market is looking at the stronger-than-expected payrolls report as further impetus for the Fed to raise yet another 75 bps at the early November meeting," said Tai Wong, a senior trader at Heraeus Precious Metals in New York.
"If bullion doesn't hold support at $1,690, it could retest $1,660 level. Market will be now be focused on key inflation data next week, as well as the Fed minutes."
Data showed U.S. employers hired more workers than expected in September, while the unemployment rate dropped to 3.5%.
Fed fund futures are now pricing in a 92% chance of a 75-basis-point (bps) rate hike by the U.S. central bank at its policy meeting next month after a strong labor market report.
Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
Following the data, the dollar jumped 0.3% against its rivals, making gold more expensive for other currency holders. Benchmark U.S. Treasury yields also climbed.
Silver eased 2.7% to $20.10 per ounce, but was on track for its biggest weekly rise since late-July, up about 6.5% so far.
Platinum lost 1.1% to $912.07 per ounce and was headed for its best week since February 2021. Palladium dipped 3.1% to $2,190.78.