(Bloomberg) -- Gold futures plunged, erasing a weekly gain, as stronger-than-expected U.S. jobs data helped ease economic concerns that had fueled demand for the metal as a haven.

Payrolls jumped 266,000, the most since January, according to a government report Friday that topped all estimates in a Bloomberg survey calling for 180,000 jobs.

Gold has struggled to sustain recent rallies as resilient U.S. economic data and bets on progress toward a U.S.-China trade deal limit demand for the metal as a haven.That weakens the case for more cuts on U.S. borrowing costs, further damping the appeal of the non-interest bearing precious metal. Prices are down about 6% from a six-year high reached in September.

The jobs report “is a blow-away number: It means there will be no more interest-rate cut, which is bearish for gold,” says Phil Streible, senior market strategist at RJO Futures.

Bullion futures for February delivery fell 0.8% to $1,471.70 an ounce at 8:35 a.m. on the Comex in New York. Prices are down less than 0.1% for the week.

The jobless rate dipped to 3.5%, matching the lowest since 1969. Average hourly earnings climbed 3.1% from a year earlier, exceeding projections, and the prior month was revised higher.

Earlier Friday, equities rose after China said it’s in the process of waiving retaliatory tariffs on imports of U.S. pork and soy by domestic companies -- a procedural step that may also signal a broader trade agreement with the U.S. is drawing closer.

“China is waiving some tariffs, which means we’re close to an agreement,” also weighing on gold, Streible said.

To contact the reporter on this story: Yvonne Yue Li in New York at yli1490@bloomberg.net

To contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Joe Richter, Christine Buurma

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