The BoE cut rates to a record-low of 0.25 percent from 0.5 percent as widely expected, pledged £60 billion pounds in government bond purchases and launched schemes to buy high-grade corporate bonds and ensure banks pass on the full rate cut to borrowers.
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Silver futures plunged 3.2 percent to below $20/oz. The number of jobs climbed by 255,000 last month, exceeding all forecasts in a Bloomberg survey of 89 economists, following a 292,000 gain in June that was a bit larger than previously estimated, a Labor Department report showed this afternoon. The unemployment rate remained steady at 4.9 percent.
The Federal Reserve has already signaled they will entertain the notion of raising interest rates if the jobs market shows sustained growth and inflation expectations pick up.
Economists polled by Reuters expect a non-farm payroll increase of 180,000.
The dollar hit one-week peaks against the euro and the Swiss franc, and turned positive versus the yen after the jobs data.
Against the yen, the dollar rose 0.6 percent to 101.77 yen.
USA futures extended gains after the publication and, at 12:38GMT or 8:38AM ET, the blue-chip Dow futures rose 0.43%, S&P 500 futures gained 0.28% and the Nasdaq 100 futures advanced 0.33%.
Canada’s consumer groups were higher, with staples up 1 per cent and discretionary gaining 1.9 per cent. Trading in most major currency pairs was subdued until the data which surprised to the upside and sent the dollar on a strong rally.
Gold is highly sensitive to rising US interest rates, which lift the opportunity cost of holding the non-yielding asset while boosting the dollar, in which it is priced. December Comex Gold lost as much as 1.2 percent on Friday on the strength of the dollar.
Elsewhere, in the commodities market, gold futures traded at $1,351.85 a troy ounce, compared to $1,367.05 ahead of the data, while crude oil traded at $41.77 a barrel from $41.81 earlier.
Brent crude settled down 2 cents at $44.27 a barrel, while US crude settled down 13 cents at $41.80.
Benchmark 10-year U.S. Treasury yields hit a more than one-week high of 1.587 percent, while two- and three-year yields hit one-week highs of 0.726 percent and 0.847 percent, respectively. The higher yields made the US Dollar a more attractive investment.
Gold is sensitive to rising USA interest rates, which lift the opportunity cost of holding the non-yielding asset while boosting the dollar, in which it is priced.
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The Fed speculation revives a scenario favored by dollar bulls, where the USA central bank moves toward tightening policy as other central banks add stimulus to bolster flagging economies. The euro fell to $1.1098 after the data, compared with $1.1128 late Thursday in NY.
