Following the dollar’s increase on Friday due to stronger-than-anticipated US employment numbers for January, gold lost 2.5% on the day and more than 3% from the previous week.
This might send a message to the markets that the US Federal Reserve has a strong enough economic foundation to keep raising interest rates, which would encourage a recovery in the value of the dollar and bond yields.
Gold fell sharply from the previous day’s closing price of $1,916 per ounce to a low of roughly $1,860 per ounce with the publication of US non-farm payrolls data last Friday. The impact of the increase in US jobs over this time period caused gold to decline by $56.
