Gold down on stronger U.S. dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as the U.S. dollar strengthened.

The most active gold contract for February delivery fell 7.9 U.S. dollars, or 0.67 percent, to settle at 1,173.40 dollars per ounce.

Gold was put under pressure as the U.S. Dollar Index rose by 0.84 percent to 102.25 as of 1845 GMT. The index is a measure of the dollar against a basket of major currencies.

The precious metal was put under further pressure as the U.S. Dow Jones Industrial Average rose by 79.61 points, or 0.4 percent as of 1845 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

Gold was put under pressure as the much-anticipated big jobs report released by the U.S. Department of Labor on Friday showed nonfarm payrolls increasing by 156,000 during the month of December which was on the lower end of expectations. The unemployment rate increased slightly to 4.7 percent, and the participation rate remained the same at 62.7 percent. However, average hourly earnings rose by 0.4 percent, which was higher than expected.

The U.S. Federal Reserve watches the jobs reports for decisions on when to raise interest rates. With the U.S. Federal Reserve's rate hike just passed, investors believe the Fed may raise rates from 0.75 to 1.00 during the March FOMC meeting at the earliest. According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to at least 0.75 is at 3 percent at the February meeting and 29 percent for the March meeting.

Silver for March delivery fell 11.8 cents, or 0.71 percent, to close at 16.519 dollars per ounce. Platinum for April delivery dropped 17.75 dollars, or 1.75 percent, to close at 994.75 dollars per ounce. Endit