A slight decline in gold as the dollar rises

Gold fell slightly today, with the dollar rising after the US jobs report indicated a stronger labor market than expected, which put pressure on prices ahead of the Federal Reserve meeting, during which it is widely expected to cut interest rates.

The price of gold in spot transactions fell 0.1 percent to $4,207.39 per ounce at 01:02 GMT.

US gold futures for February delivery settled at $4,236.60 an ounce.

Yesterday, the dollar rose to its highest level in almost a week, as better-than-expected employment numbers confirmed the strength of the labor market ahead of the central bank meeting.

Yields on standard 10-year US Treasury bonds rose yesterday, exceeding previous declines, to settle at their highest level in two and a half months, which they recorded on Monday.

Meanwhile, White House economic advisor Kevin Hassett, the front-runner for the position of Federal Reserve Chairman of the CEO Council, said in the Wall Street Journal yesterday that there is “wide scope” to lower interest rates further. However, he added that if inflation rises, the calculations may change. The two-day Federal Open Market Committee meeting concludes with a rate decision today. Investors now expect an 88.6 percent probability of a 25 basis point cut in interest rates.

Non-yielding assets, such as gold, tend to rise when interest rates are low.

As for other precious metals, the price of silver in spot transactions rose 0.5 percent to its highest level ever at $61.02 per ounce, after crossing the $60 threshold yesterday, Tuesday.