Gold Price Dips as Strong US Jobs Report Boosts Fed Rate-Hike Bets

Gold prices dipped on Monday after the strong US jobs report boosted expectations for a Federal Reserve interest rate hike this month. The robust employment data sent bond yields higher, which in turn increased the likelihood of a rate increase at the central bank's policy meeting next week.

The US producer price index data is due on Thursday and the consumer price index data is scheduled for Friday. While gold is often seen as an inflation hedge, higher interest rates tend to diminish its appeal to investors.

Ole Hansen, head of commodity strategy at Saxo Bank, noted that gold has twice found buying interest below $4,400, well ahead of key support around $4,320, while resistance continues to emerge above $4,500.