Commodities
Gold Price Plunges 2.7% as US Interest Rate Hike Bets Soar
The gold price plummeted 2.7% to $4,312 per ounce in international markets as concerns about US interest rates mounted.
The sharp decline was triggered by a robust US labor market report that showed 162,000 jobs added in August, nearly three times the expected 53,000. This strengthened the case for a hawkish Federal Reserve, with CME's FedWatch tool placing the probability of a 25-basis-point rate hike at 60.4%.
The dollar index rose to 99.16 on September 4 on hike bets, but slipped to 98.93 on September 7 as the initial reaction faded. The yen firmed meaningfully after Bank of Japan officials adopted a more hawkish tone ahead of the central bank's policy decision.