Gold prices fell on Friday and seemed set for a weekly drop, as a stronger-than-expected U.S. jobs report raised expectations that the Federal Reserve will probably refrain from cutting rates at its December meeting. Spot gold saw a decrease of 0.2%, trading at $4,062.79 per ounce, as of 0157. Bullion has seen a drop of 0.3% so far this week. Gold futures in the U.S. for December delivery rose by 0.2%, hitting a price of $4,068.10 per ounce. The U.S. Labor Department report, delayed by the federal government shutdown, showed that nonfarm payrolls in September increased by 119,000, far surpassing the expected rise of 50,000. Traders currently see a nearly 39% chance of a Federal Reserve rate cut next month, down from the 60% likelihood noted earlier this month.

Gold, known for being a non-yielding asset, usually shows strong performance in settings with low interest rates. On Friday, the dollar seemed ready to secure its strongest weekly performance in more than a month, as investors anticipated that the Federal Reserve is not expected to make rate cuts next month. An appreciating dollar raises the price of gold in dollars for those using different currencies. Minutes from the Fed’s October meeting released on Wednesday indicated a reduction in interest rates, despite policymakers cautioning that such a move could jeopardize the persistence of inflation and undermine public confidence in the U.S. central bank.

On Thursday, Chicago Fed President Austan Goolsbee expressed his concerns about the premature reduction of interest rates, particularly as the advancement towards the Fed’s 2% inflation target seems to have halted and is starting to move in the opposite direction. Cleveland Fed President Beth Hammack warned on Thursday that additional rate cuts at this time pose a wide range of risks for the economy. Fed Governor Lisa Cook highlights a possible threat of major drops in asset values.

SPDR Gold Trust, known as the largest gold-backed exchange-traded fund in the world, announced a reduction in its holdings by 0.41%, resulting in a total of 1,039.43 tons in the last session, down from 1,043.72 tons on Wednesday. Elsewhere, spot silver declined 0.4% to $50.39 per ounce, platinum increased 0.4% to $1,517.95, and palladium rose 0.3% to $1,381.22.