Gold Dips Amid Strong US Jobs Data, Interest Rate Hike Fears
Gold prices dipped on Monday after robust US employment data hinted at higher interest rates, sparking a decline in the precious metal's value. The spot gold price fell by 0.5% to $4,405.47 an ounce as of 02:11 GMT.
The recent US job growth data showed that unemployment held steady at 4.1%, while job additions accelerated sharply in August. This has kept the possibility of an interest rate hike this month on the table, which would typically reduce gold's appeal due to its non-yielding nature.
Market participants are awaiting key US inflation figures, with the Producer Price Index (PPI) data scheduled for Thursday and Consumer Price Index (CPI) numbers set to be released on Friday. The Federal Reserve's monetary policy path is expected to become clearer following these releases.