162K Jobs Boost Rate Hike Odds, Put Gold Under Pressure
The US labor market added 162,000 jobs in August 2026, exceeding expectations of 53,000 to 56,000 and boosting the odds of a rate hike at the Federal Reserve's September meeting. According to the CME FedWatch Tool, the probability of a 25 basis point rate hike rose from roughly 50% to the high 50s after the payrolls release.
The strong labor data led to an increase in Treasury yields, with the 10-year yield rising to 4.79%. This, in turn, put pressure on gold prices, which fell 1.14% to $4,429 per ounce. The US Dollar Index also climbed to 99.16.
The World Gold Council reported that central banks purchased 289 tonnes of gold in the second quarter of 2026, providing a source of physical demand that is less sensitive to weekly changes in Fed rate expectations.