Jobs Report Sinks Gold

Updated from 12:34 p.m. EDT

Gold investors failed to find much salvation in the September jobs report.

The price of gold bullion ended the week lower, with a strengthening dollar keeping a lid on any attempt at a rally as investors decided the economy is slowing, but still growing enough to avoid a recession.

The Labor Department says the U.S. economy created only 51,000 jobs in September, compared with the consensus forecast of 120,000. However, the government also made an upward revision to the August report, saying there were now 188,000 jobs created two months ago, up from the previously announced 128,000.

Meanwhile, the September unemployment rate fell to 4.6%, down from 4.7% in August. Analysts had been expecting the unemployment rate to remain unchanged.

"When you look at the jobs data and the back month data revisions, it's largely a wash," says Marc Chandler, chief currency strategist at Brown Brothers Harriman and a RealMoney contributor.

Chandler says the employment numbers are indicative of a fairly robust economy and not one headed for a recession. He says the September report "reduces the chances of a rate cut'' by the Federal Reserve in the coming months, as some on Wall Street have speculated about.

Currency traders reacted to the news by marking up the dollar, which was buying 118.96 yen, compared to 117.66 yen late Thursday. It was also gaining against the euro, which was trading at $1.2584 vs. $1.2694.