Gold hits one-week low after US jobs data beats forecasts; aluminium rises

New York

GOLD fell as much as 1.7 per cent on Friday, as the dollar rose after US data showed employment increased more than expected in July, raising the probability of an interest rate hike from the Federal Reserve this year.

US non-farm payrolls increased by 255,000 jobs last month, the Labor Department said on Friday, up from an expectation of 180,000 jobs.

Spot gold fell to a one-week low of US$1,336.46 an ounce and was down 1.7 per cent at US$1,338.25 by 2.48pm EDT (1848 GMT). It was on track for its weakest session since July 12 and set to finish the week down 0.9 per cent.

The most active US gold futures for December delivery settled down 1.7 per cent at US$1,344.40 per ounce. "I don't think all the new retail investors are very happy with this direction," said Rob Haworth, senior investment strategist for US Bank Wea…