Gold Price Under Pressure as Fed Hike Expectations Rise

The gold price in Australia is under pressure after a stronger-than-expected US jobs report on September 2. The report showed that employers added 162,000 jobs, almost three times the market expectation of approximately 56,000.

This has led to an increase in expectations for a Federal Reserve interest-rate hike in September, which has weighed on gold prices.

Spot gold is trading around US$4,400 per ounce on September 7. The recent decline highlights the growing tension between higher US interest-rate expectations and persistent geopolitical risks that continue to support safe-haven demand.

Australian investors and traders are watching the gold price in AUD closely, as movements in XAU/USD can be amplified or offset by changes in the Australian dollar.