Weekly Gold Review: Gold and silver futures plunge as dollar firms above 100

Gold and silver futures plummeted to its lowest level in over two months of Friday as dollar index surged on stronger than expected jobs data that increases prospects for a Federal rate hike. Ongoing uncertainty in the Middle East also continues to support safe-haven demand in the currency. Jobs data showed the US economy added 172,000 positions in May, far exceeding forecasts. The report pushed Treasury yields higher, with the 10-year yield rising above 4.5% fueling concerns that elevated borrowing costs could weigh on economic growth and investment. Meanwhile, lack of any concrete settlement on US and Iran war front that is keeping oil prices elevated is also adding to inflationary pressures and flocking inventors to dollar for respite. US stocks also slumped on Friday after a strong jobs report consolidated the outlook of restrictive interest rates, while chip producers extended their selloff. The dollar index that measures the greenback against a basket of currencies ended the week at 100.03, up 0.67% on the day. COMEX gold was last seen at $4353.90 an ounce, down over 3% on Friday. Silver tumbled nearly 7% to $68 per ounce.

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