Investing.com - Gold prices traded slightly lower on Friday, as the dollar slumped, despite a rise in expectations of a March rate hike to its highest level, after U.S. jobs data for February beat expectations.
Gold for April delivery on the Comex division of the New York Mercantile Exchange shed $1.25 or 0.19%, to trade at $1,201.95 a troy ounce.
Gold pared losses sustained from the early morning trade and benefited from a slump in the dollar, after a US jobs report showed wage growth slowed while non-farm payrolls beat expectations.
The Labor Department's non-farm payrolls report showed employers added 235,000 jobs last month, beating expectations for 200,000.
Wage growth stuttered in February and rose by only 0.2% compared to forecasts of a 0.3% increase.
The weaker wage growth raised doubts concerning the pace of rate hikes this year, as the U.S. 10-Year fell 0.34% to 2.589.
According to Investing.com’s Fed rate monitor tool, 93% of traders expect a rate hike in March, compared to just 80% of traders on Monday.
Gold is sensitive to moves in U.S. interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
Elsewhere, silver futures dropped 0.62% to $16.93 a troy ounce while copper traded higher at $2.594.
Platinum traded at $938.20 up 0.11% while Natural Gas gained 0.84% to $2.999.