02:00 PM EDT, 09/06/2024 (MT Newswires) -- (Updates prices.)

Gold traded lower by midafternoon on Friday even as treasury yields fell and the dollar steadied following the latest in a series of reports showing a cooling in U.S. labor markets as the economy there slows.

Gold for December delivery was last seen down US$20.40 to US$2,522.70 per ounce.

The U.S. Bureau of Labor Statistics on Friday reported the country added 142,000 new jobs last month, up from 114,000 in July but well under expectations for a rise of 161,000 positions, according to Marketwatch.

While the U.S. unemployment rate fell to 4.2% from 4.3% a month earlier, the report is the latest to show the labor market is cooling more than expected under the weight of interest rates currently at 23-year highs. The Federal Reserve's policy committee will meet later this month, with at least a 25 basis rate cut certain, though pressure may build to cut by 50 basis points. The CME Fedwatch tool currently shows a 55% probability of a 25 basis point cut and a 45% chance for a 50 basis point drop.

The dollar steadied after dropping sharply following the data. The ICE dollar index was last seen up 0.07 points to 101.18, up from 100.72 immediately following the release of the jobs report.

Treasury yields were mixed, with the U.S. two-year note last seen paying 3.669%, down 8.3 basis points, while the yield on the 10-year note was down 3.2 basis points to 3.701%