Gold prices climb, but dollar gains keep lid on upside after stronger Nov. payroll

Gold prices rose slightly Friday though gains were kept in check by a stronger dollar following a rebound in U.S. jobs gains for November.

Spot gold rose 0.2% to $2,637.02 an ounce, while gold futures expiring in February rose 0.40% to $2,637.02 an ounce by 1:30 p.m. ET (18:30 GMT).

On the geopolitical front, France’s government collapse and a failed attempt to impose martial law in South Korea kept some safe haven demand in play. Tensions in the Middle East, and between Russia and Ukraine also remained high. Strong Nonfarm payrolls data fail to shake December rate-cut bets

Nonfarm payrolls increased by 227,000 jobs last month, above the expected 202,000, after rising an upwardly revised 36,000 in October as the labor market reeled from Hurricanes Helene and Milton as well as a big strike at Boeing (NYSE:BA ) factories in the West Coast.

The data, which also showed an uptick in the unemployment rate, isn't expected to dissuade the Fed from cutting rates for third time this year, when the FOMC gathers at the Dec. 17-18 meeting.

The dollar gained even as Treasury yields fell, keeping a lid on gains in dollar-denominated commodities such as gold.

Other precious metals rose on Friday but were also nursing losses through November. Platinum futures rose 0.7% to $933.15 an ounce, while silver futures rose 0.04% to $31.550 an ounce. Copper rises on signs of tighter supplies; China data awaited

Among industrial metals, copper prices were supported by reports that major copper miners had agreed to much lower processing fees for 2025, amid concerns over the availability of copper concentrate in spot markets.

A slew of key Chinese economic readings and events are also due in the coming week. Benchmark copper futures on the London Metal Exchange rose 0.1% to $9,105.50 a ton, while February copper futures rose 0.1% to $4.1955 a pound.

Chile’s Antofagasta (LON:ANTO ) and China’s Jiangxi Copper had agreed to substantially lower fees to process copper concentrate for 2025, Reuters reported. Fees usually tend to decline amid lower levels of concentrate in spot markets, indicating tight supplies.

A slew of key economic readings from top importer China are due next week, including inflation and trade data. China’s Central Economic Work Conference is also set to take place next week, offering up more cues on the economy and stimulus.

(Amber Warrick contributed to this story.)

Source: Investing.com