Gold falls at settlement as US dollar soars

Gold alloys

Gold prices contracted at settlement today, Oct. 2, pressured by the rise in the US dollar and Treasury bond yields, following economic data that indicated a stronger US labor market.

Bullion for December delivery eased by 0.75%, or $20.60, to finish at $2,669.70 per ounce, after touching $2,662.10 apiece in early trading.

On the other hand, the US dollar index, which gauges the greenback's strength against a basket of six currencies, climbed by 0.45% to 101.66 points at 09:30 pm Makkah time.

The ADP report showed that US private sector companies added 143,000 new jobs in September, accelerating from an upwardly revised 103,000 in August, and exceeding forecasts of 124,000 jobs.

Richmond Federal Reserve Bank President Thomas Barkin pointed out that over the past three months, US core inflation came in just above the Fed's 2% target at 2.1%. He also stated that the annual rate is unlikely to decline until 2025.