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Gold fell for a ninth straight session on Friday on a stronger dollar ahead of key U.S. jobs data and the metal was headed for its worst weekly dip in over three years on increased expectations of a Federal Reserve rate rise by year end.

Market participants were awaiting the U.S. nonfarm payrolls report due later in the day for further indications on the strength of the job market, as the Federal Reserve has indicated that future interest rate decisions will be data-dependent.

Fed officials set to speak Friday include Cleveland Fed President Loretta Mester, who said this week that the case for a rate increase would still be “compelling” when the next policy review concludes on Nov. 2. Fed Vice Chairman Stanley Fischer, Governor Lael Brainard and Kansas City Fed President Esther George are all scheduled to talk in Washington

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.43% at 97.08, the highest since July 27.

Goldman Sachs Group Inc. says that a strategic buying opportunity may open up in gold should prices drop substantially below $1,250 an ounce, with bullion offering investors a way to protect themselves against risks to global growth and limits to central banks’ effectiveness.

While the decline over the past month, which has accelerated this week, has been in line with the bank’s bearish outlook, there could be a case for purchases if the sell-off deepens, according to analysts including Jeffrey Currie and Max Layton. On Friday, bullion was less than $5 above the $1,250 level and headed for the biggest weekly slump in more than three years.

Reference: Bloomberg, Reuters, Investing