09:16 AM EST, 01/10/2025 (MT Newswires) -- Gold prices rose early on Friday even as the dollar and treasury yields surged after the United States reported hiring rose much more than expected in December.

Gold for February delivery was last seen up US$6.40 to US$2,697.20 per ounce.

The U.S. Bureau of Labor Statistics reported U.S. employment rose by 256,000 jobs last month, up from 227,000 in November, and well ahead of the consensus estimate for a rise of 153,000 positions, according to FactSet.

The dollar surged following the report, with the ICE dollar index last seen up 0.48 points to 109.65 after earlier touching 109.97, the highest since October, 2022,

While a higher dollar is normally bearish for gold, the precious metal is rising for a fourth-straight day as investors seek its safe haven.

"Despite the headwinds from dollar and Treasury yield strength, investors are turning to tangible assets to hedge against persistent inflation risks and mounting fiscal debt concerns, and the risk of tariffs uprooting normal trading dynamics. This trend is further supported by increased hoarding of physical metals by Chinese traders, who are wary of potential further depreciation of the yuan," Saxo Bank noted.

Treasury yields were also sharply higher, with the U.S. two-year note last seen up 0.86 basis points to 4.358%, while the 10-year note was paying 4.771%, up 8.2 basis points.