Gold Prices Plunge Amid Expectations of Interest Rate Hike

The gold market experienced a downturn on Thursday, with prices hitting session lows due to the release of labor market data. The number of American workers applying for first-time unemployment benefits remained steady at 206k for the week ending September 5, according to the Labor Department. This stability in the job market gives the Federal Reserve room to raise interest rates at next week's monetary policy meeting.

Spot gold traded at $4,331.40 an ounce, down over 1% on the day. Analysts attribute this move to the expectation of higher interest rates, which would increase the opportunity cost of holding gold and other non-yielding assets.