Gold declines after US jobs data reduces interest rate cut hopes

Gold prices fell today, after US jobs data, which was stronger than estimates, reduced expectations that the Federal Reserve (the US central bank) would reduce interest rates again in December.

Gold fell in spot transactions by about 0.3 percent to $3,971.08 per ounce by 0144 GMT.

US gold futures for December delivery fell 0.3 percent to $3,979.70 an ounce.

The dollar held steady at just below the four-month high it reached in the previous session, amid increasing demand for riskier assets.

The US Central Bank lowered interest rates last week, and its Chairman, Jerome Powell, indicated that there may be another reduction in borrowing costs this year.

The employment report issued by ADP showed that jobs in the private sector in the United States rose by 42,000 jobs last month, which is more than Reuters estimates of an increase of 28,000 jobs.

A strong labor market usually reduces the likelihood of interest rate cuts and can keep interest rates higher for longer.

According to the Fed Watch tool, the market currently expects 62 percent of the US Federal Reserve to cut interest rates in December, down from more than 90 percent last week.

As for other precious metals, silver fell in spot transactions 0.6 percent to $47.77 per ounce, platinum fell 0.8 percent to $1,549.21, and palladium fell 0.7 percent to $1,408.74.