Gold Prices Flat Amid Rising Rate Hike Bets and Dollar Gains

Gold prices held steady on Friday after stronger-than-expected US payrolls data raised the prospects for an interest-rate hike as early as next week. The metal was little changed near $4,430 an ounce, having fallen 1% in the previous session.

The US job growth surged in August and the unemployment rate held steady, according to numbers published Friday, bolstering the argument for raising rates at the Federal Reserve’s Sept. 15-16 meeting. This has led to a rise in the dollar, making gold more expensive for many buyers, which is typically a headwind for non-yielding bullion.

Traders have dialed up bets on a rate hike in September, pricing in a roughly 60% likelihood versus an even chance earlier in Friday’s session. Higher borrowing costs are usually unfavorable for gold, but the metal has been relatively stable since bouncing back from a floor near $4,000 an ounce in July.