Gold slips to about £3,065 an ounce as strong US jobs data lifts rate hike bets

Gold ended the week lower on Friday after a strong US jobs report. Spot gold fell to roughly $4,045 to $4,070 a troy ounce, according to FXStreet and Kitco, after touching a weekly high of $4,147 on Thursday. On our approximate conversion that is about £3,065 an ounce, or £98.50 a gram, before any dealer costs.

The trigger was US payrolls. Kitco reports employers added 165,000 jobs in October, far above the roughly 65,000 economists expected, and FXStreet says unemployment dropped to 4.1 per cent. A strong jobs market gives the US Federal Reserve more reason to raise interest rates again. FXStreet puts the chance of a December rise at about 76 to 80 per cent. Higher rates tend to weigh on gold because it pays no interest, which explains the quick drop after the figures.

The week still left gold well above the lows reached at the end of October, when it briefly dipped below $3,900. The next test is US inflation data, due on 10 November. A hotter reading could add to the pressure, while a softer one could help gold recover.

For UK buyers, investment gold coins and bars are free of VAT, so the real price is spot plus dealer premium plus delivery. Compare that all-in total rather than reacting to one day's move. This is market information, not financial advice.