Gold jumps, dollar retreats

Gold jumped 1 percent on Friday as the dollar retreated after U.S. jobs data came mostly in line with expectations. Moreover, it was still bound for a third consecutive weekly fall pressured by an elevated interest rate environment.

Spot gold increased 0.9 percent to $1,711.1438 per ounce. Prices declined 1.5 percent for the week. U.S. gold futures rose 0.8 percent at $1,723.

“The jobs numbers were very close to market expectations. The market is deeming it as a goldilocks number as it doesn’t suggest weakness, but is not too strong to prompt an even more aggressive Fed,” senior analyst at Kitco Metals stated.

Gold is kind of seeing a relief-short covering rally. Nonfarm payrolls increased by 315,000 jobs last month, according to the Labor Department statement in its closely watched employment report.

The dollar index declined around 0.1 percent, making gold cheaper for overseas buyers while U.S. Treasury yields were also lower for the day.

On the technical front, prices need to break above the trendline from the March peak, currently at $1,770, before signalling a recovery, according to Saxo Bank analyst Ole Hansen statement.

In physical markets, gold premiums climbed in top consumer China, while a drop in local prices increased demand in India.