Gold prices continued their downward trend following the release of strong US jobs data, which has bolstered expectations of a December interest rate hike by the Federal Reserve. The precious metal was trading around $4,070 an ounce after a 0.4% drop on Friday. The latest employment figures showed robust job growth in October, coupled with a slight decline in the unemployment rate, signaling ongoing strength in the labor market.
The Federal Reserve is likely to raise interest rates in an effort to curb inflation, a move that typically weakens demand for non-yielding assets like gold. Meanwhile, separate data revealed that US consumer sentiment reached a three-month high in early November, further supporting the case for tighter monetary policy.
The decline in gold prices reflects investor sentiment shifting away from safe-haven assets amid signs of economic resilience. Analysts suggest that if the Fed proceeds with a rate hike, gold could face further downward pressure in the near term.