Gold futures fell as signs of further progress in the U.S. labor market boosted the case for the Federal Reserve to raise interest rates.
A 215,000 gain in payrolls last month followed a 231,000 advance in June that was bigger than previously estimated, a Labor Department report showed Friday. The unemployment rate held at a seven-year low of 5.3 percent.
Bullion prices posted the biggest monthly decline in two years in July as the outlook for tighter monetary policy prompted investors to favor assets with better yield prospects. The Fed has signaled that it’s likely to raise rates this year for the first time since 2006 as the labor market improves.
Gold futures for December delivery lost 0.4 percent to $1,086.10 an ounce at 8:32 a.m. on the Comex in New York.