Gold declines as the possibility of a US interest rate cut decreases

Gold prices fell today, and are on track to record a weekly decline after a stronger-than-expected jobs report in the United States supported estimates that the Federal Reserve (the US central bank) will not reduce interest rates at its meeting in December.

Gold fell in instant transactions by 0.2 percent to $4,062.79 per ounce by 01:57 GMT. The precious metal has fallen 0.3 percent since the beginning of the week until now.

US gold futures for December delivery increased 0.2 percent to $4,068.10 an ounce.

A US Department of Labor report, whose publication was delayed due to the federal government shutdown, showed that non-farm jobs rose by 119,000 jobs in September, more than double the expected increase of 50,000 jobs.

Traders currently expect approximately 39 percent that the US Central Bank will reduce interest rates next month, down from expectations of 60 percent earlier this month.

Non-yielding gold usually tends to rise in low interest rate environments.

Today, Friday, the dollar is heading to record its strongest weekly performance in more than a month. The strength of the dollar makes gold priced in it more expensive for holders of other currencies.

As for other precious metals, silver in spot transactions decreased 0.4 percent to $50.39 per ounce, platinum rose 0.4 percent to $1,517.95, and palladium increased 0.3 percent to $1,381.22.