Gold Prices Fall Amid Strong US Jobs Data and Rate Hike Bets

Gold prices fell on Friday and were headed for a weekly loss after stronger-than-expected US jobs data boosted expectations that the Federal Reserve could raise interest rates as soon as this month.

The US Bureau of Labor Statistics reported accelerated job growth in August, with the unemployment rate remaining steady at 4.1%. This has increased the likelihood of an interest rate hike from the Federal Reserve at its September 15-16 meeting.

Spot gold prices slipped 1.1% to $4,422.91 per ounce, while US gold futures for December delivery dropped 1.5% to $4,469.80 per ounce.

Independent analyst Tai Wong said the strong jobs report makes a September rate hike 'much more likely unless we get a weak CPI report.'