---
title: "PRECIOUS-Gold drops as strong US payrolls boost dollar, yields"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/304681384.md"
datetime: "2026-11-06T19:02:13.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/304681384.md)
  - [en](https://longbridge.com/en/news/304681384.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/304681384.md)
generator: "portal-rs"
---

# PRECIOUS-Gold drops as strong US payrolls boost dollar, yields

-   US job growth beats expectations in October
-   Bullion on track for best week since late August
-   Price dip spurs gold buying in India ahead of Diwali
-   Silver, platinum and palladium head for weekly gains

(Updates prices for US closing hours)

By Anushree Mukherjee

Nov 6 (Reuters) - Gold prices fell on Friday after stronger-than-expected US payrolls data reinforced expectations that the Federal Reserve could keep interest rates higher for longer, boosting the dollar and Treasury yields.

Spot gold (XAU=) fell 0.3% to $4,074.36 per ounce by 01:54 p.m. ET (1854 GMT). The metal fell by more than 1% to hit a low of $4,033.29 earlier in the session.

Spot gold was up 5.2% for the week, on track for its best week since August.

US gold futures (GCv1) for December delivery settled 0.9% lower at $4,074.90.

The US dollar rose 0.7% to its highest level since October 29, making dollar-denominated gold more expensive for holders of other currencies, while benchmark 10-year Treasury yields also climbed. (USD/) (US/)

“Gold gapped lower on a stellar employment report (that was) strong across the board, but is trying to claw back higher. This is a litmus test for this week’s rally,” independent metals trader Tai Wong said.

US nonfarm payrolls increased more than expected in October and the unemployment rate fell to 4.1%, suggesting the labor market remained resilient and giving the Federal Reserve more scope to focus on inflation stemming from the Middle East conflict.

Traders currently see an 81% chance that the Fed will raise rates in December, compared with 72.8% before the payrolls report, according to CME’s FedWatch tool.

Higher interest rates raise the opportunity cost of holding non-yielding bullion, making gold less attractive to investors.

Brent crude was on track for a sharp weekly drop on expectations of a de-escalation in the US-Iran war after midterm election results, although persistent Middle East supply concerns continued to support prices. (O/R)

Two Federal Reserve officials on Thursday backed small, steady rate hikes to rein in above-target inflation.

On the physical front, lower gold prices encouraged Indian retail buying ahead of the key Diwali festival. Gold had dropped to a one-year low of $3,869.85 an ounce on October 30. (GOL/AS)

Among other metals, spot silver (XAG=) rose 0.8% to $52.18, platinum (XPT=) gained 1.6% to $1,541.42, while palladium (XPD=) fell 0.6% to $1,024.59. All three were poised for weekly gains.

Spot Gold vs Brent Crude

Spot Gold Weekly Price Chart

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**