Gold prices moved sharply lower during trading on Friday, as the value of the U.S. dollar moved higher following the release of the closely watched monthly jobs report.
After slipping $5.60 or 0.3 percent to $1,808.90 an ounce in the previous session, the price of gold for December delivery plunged $45.80 or 2.5 percent to $1,763.10 an ounce.
The steep drop by the price of gold came after the Labor Department released a report showing non-farm payroll employment spiked by 943,000 jobs in July after surging by an upwardly revised 938,000 jobs in June.
Economists had expected employment to jump by 870,000 jobs compared to the addition of 850,000 jobs originally reported for the previous month.
The stronger than expected job growth was partly due to sharp increases in employment in leisure and hospitality and local government education, which shot up by 380,000 jobs and 221,000 jobs, respectively.
Reflecting the strong job growth, the unemployment rate slid to 5.4 percent in July from 5.9 percent in June, falling to its lowest level since March of 2020. Economists had expected the unemployment rate to dip to 5.7 percent.
The upbeat jobs data reduced the appeal of safe haven assets like gold and treasuries while also contributing to the increase in the value of the U.S. Dollar.