Investing.com - Gold prices retraced gains on Friday after data showing a strong rebound in U.S. jobs growth last month underlined expectations for a June rate hike by the Federal Reserve.
Gold for June delivery settled at $1,229.01 on the Comex division of the New York Mercantile Exchange, off an earlier high of $1,236.00.
The precious metal ended the week down 3.26%, the largest week decline since early November.
The Labor Department reported Friday that the U.S. economy added 211,000 jobs last month, beating expectations for a gain of 185,000 and the unemployment rate ticked down to 4.4%, a near a 10-year low.
The report also showed that the prior month's figure of 98,000 was revised down to an even lower 79,000.
Average hourly earnings rose 0.3% in April. However, downward revisions to previous months lowered the year-on-year increase to 2.5%, the smallest gain since August 2016, from 2.6% in March.
The jobs data did little to alter the view that the Federal Reserve will raise interest rates in June. Markets are pricing in around a 75% chance of a hike at the Fed's June meeting, according to Investing.com's Fed Rate Monitor Tool.
Expectations of a faster pace of rate increases tend to weigh on gold, which is denominated in dollars and struggles to compete with yield-bearing assets when borrowing costs rise.
Fading euro zone political risks also weighed on safe haven for the precious metal ahead of Sunday's second round vote in the French presidential elections.
Opinion polls on Friday showed centrist Emmanuel Macron with a 23- to 26-percentage-point lead over anti-EU far-right candidate Marine Le Pen ahead of Sunday's second-round vote.
Elsewhere in precious metals trading, silver was up 0.47% to $16.38 a troy ounce, and ended the week down 5.72%.
Copper was trading at $2.53 a pound late Friday, up 1.02% for the day and ended the week down 2.97% as commodity markets slumped amid concerns over weakening demand from China.
Palladium was up 1.58% at $813.3 and finished the week down 1.65%. Platinum was up 0.74% at $914.4 an ounce and ended the week with losses of 3.56%.
The outcome of the French presidential elections is likely to set the tone in financial markets this week.
Investors will also be looking ahead to Friday's U.S. data on inflation and retail sales to gauge if the economy is on a strong enough footing for another rate hike as soon as next month.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 8
Australia is to release data on building approvals and business confidence.
China is to publish trade data.
The UK is to produce industry data on house prices.
Tuesday, May 9
Australia is to release data on retail sales.
Canada is to publish a report on building permits.
Dallas Fed President Robert Kaplan is to speak at an event in Dallas.
Wednesday, May 10
China is to release data on consumer and producer price inflation.
ECB President Mario Draghi is to speak about the impact of monetary policy at the Dutch House of Representatives, in Netherlands
The U.S. is to release data on import prices.
Thursday, May 11
The Reserve Bank of New Zealand is to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision. The announcement is to be followed by a press conference.
Switzerland is to release inflation data.
The UK is to report on manufacturing production.
The Bank of England is to announce its latest monetary policy decision and publish the meeting minutes.
Canada is to report on new house price inflation.
The U.S. is to release reports on initial jobless claims and producer prices.
Friday, May 12
Finance ministers and central bankers from the G7 nations are to meet in Italy.
The U.S. is to round up the week with a string of reports including a look at consumer prices, retail sales and consumer sentiment.