A previous version of this Market Pulse misstated the number of nonfarm jobs created in June. The headline has been corrected.
Gold futures tumbled Friday morning after a key reading of U.S. jobs came in far better than expected, sparking doubt about a price-supportive rate cut by the Federal Reserve for bullion. The U.S. dollar also jolted higher, as measured by the ICE U.S. Dollar Index DXY, +0.56% up 0.4%, creating a headwind for dollar-priced gold, which tends to decline as the buck strengthens, making commodities priced in the currency more expensive to buyers using other monetary units. August gold GCQ19, -1.43% was down 1.4% at $1,400 an ounce, with prices at $1,416.10 an ounce just prior to the labor report, according to FactSet data. The U.S. added 224,000 new jobs in June, rebounding from a lull in May, and the unemployment rate, meanwhile, edged up to 3.7% from 3.6% as more than 300,000 people entered the labor force in search of work. Unemployment is still near a 50-year low, however. The healthy report casts some doubt about a rate reduction by the Fed, which has been anticipated amid signs of weak domestic data, including last month’s less-than-stellar jobs report.