Gold Falls as US Job Growth Data Fuels Interest Rate Hike Expectations

Gold prices have fallen due to stronger-than-expected US employment data and increased expectations of higher interest rates. The spot price of gold dropped by 0.6% to $4,402.86 per ounce as of Monday morning GMT.

The recent US job growth data showed a sharp acceleration in August, with the unemployment rate remaining unchanged at 4.1%. This has kept the possibility of a September interest rate hike on the table, according to the Federal Reserve's upcoming meeting on September 15-16.

Investors are now focusing on this week's inflation data releases, including the US producer price index (PPI) on Thursday and consumer price index (CPI) figures on Friday. The current probability of a rate hike is priced in at 58.4% by CME's FedWatch tool.

Higher interest rates generally reduce the appeal of non-yielding assets like gold, causing its value to decrease. Other precious metals also fell, with spot silver down 0.6%, platinum falling 1.1%, and palladium dropping 0.5%.