Commodities
Gold Prices Decline Amid Strong US Employment Data, Geopolitics
Gold prices began the week near $4,400 per ounce after experiencing a weekly decline due to stronger-than-expected US employment data.
The data showed that nonfarm payrolls increased by 162,000 in August, exceeding expectations of around 55,000. This has strengthened expectations of another Federal Reserve rate hike and supported the US dollar, putting pressure on non-yielding bullion.
However, gold remained relatively resilient due to renewed geopolitical tensions providing safe-haven support. The recent US-Iran attacks involving vessels in the Gulf have raised concerns that higher energy costs could add to inflationary pressures and complicate the Fed's policy outlook.