Gold price traded lower on Friday after the better-than-expected job report increase the likelihood of another rate hike this year.
Gold is highly sensitive to the changes in U.S. interest rates as a higher rate will increase the opportunity cost of holding non-yielding bullion.
Gold Spot fell 1.25 percent to $1,209.94 per ounce during the Friday trading session. While U.S. Gold future for August delivery dropped 0.99 percent to $1,211.20 per ounce.
"We have a stellar U.S. jobs number," said Naeem Aslam. chief market analyst at Think Markets, Reuters reported. "The data has brought negative news for gold traders as there isn’t really anything in this number which is going to put the brakes on an interest rate hike."
Gold price is on track for a 1.6 percent decline this week. The yellow metal has gained 5.85 percent this year.
The U.S. payrolls report showed that non-farm payrolls jumped by 222,000 jobs in June, according to the Labor Department. Economists surveyed by Reuters had expected a gain of 179,000. Data for April and May was revised to show 47,000 more jobs created than previously reported. The unemployment rate was 4.4 percent last month, up from a 16-year low of 4.3 percent in May.
"Despite the lack of a pickup in wage growth and core inflation, the Fed will nevertheless push ahead with hiking interest rates," said Paul Ashworth, chief U.S. economist at Capital Economics in Toronto, Reuters reported. "The unemployment rate is already unusually low."