Gold Prices Extend Decline Amid Expectations of Fed Rate Hike

World gold prices have extended their decline after losing 1% in the previous session. The market continues to re-evaluate its outlook for the precious metal following positive US jobs data.

The price of spot gold decreased by 0.85%, to $4,392.82 per ounce, as of 2:43 PM on September 7th Vietnam time. Meanwhile, December gold futures prices declined by 0.84%, to $4,439.21 per ounce.

The decline in gold prices is attributed to the increased expectations that the US Federal Reserve (Fed) could raise interest rates in September. This has put pressure on gold as a non-performing asset. The market is currently monitoring price movements around the $4,400 per ounce mark to assess the recovery or continued adjustment of the precious metal.

If gold recovers above the $4,400 per ounce threshold, buying power may be strengthened. Conversely, maintaining below this level may cause selling pressure to continue dominating price movements.