Gold Dips as Strong US Jobs Data Boosts Rate-Hike Bets

Gold prices dipped on Monday as strong US jobs data boosted expectations for higher interest rates. The spot price of gold fell 0.5% to $4,405.47 per ounce, while US gold futures for December delivery dropped by the same margin to $4,452.20.

The US labor market showed a sharp acceleration in August, with job growth accelerating and the unemployment rate holding steady at 4.1%. This has kept a September rate hike on the table, putting pressure on gold prices.

Market participants are awaiting key inflation data due later this week, including the producer price index (PPI) on Thursday and the consumer price index (CPI) on Friday. A strong inflation print could reinforce expectations of a Fed hike and weigh more heavily on gold.