Gold Prices Plummet on Strong US Labor Market Data

The US labor market data released last week has triggered a sharp drop in gold prices. The spot price of gold fell by 0.96% to $4,430.33 per ounce, while December gold futures dropped by 1.38% to $4,477.20 per ounce.

The strong job numbers, which exceeded expectations, have increased the likelihood of a Federal Reserve interest rate hike in September. This has put pressure on gold prices as investors opt for USD-denominated assets over the precious metal.

Despite the short-term decline, some analysts predict that gold prices will fluctuate strongly next week, staying within the range of $4,320-$4,670 per ounce. The 4,280 mark is seen as a key support level, with a break below potentially leading to a further drop to $4,200 per ounce.