Gold Prices Plunge Amid Strong US Job Growth and Rising Rate Hike Bets

Gold prices took a hit on Friday after strong US job growth numbers boosted expectations that the Federal Reserve could raise interest rates as soon as this month.

The spot price of gold slipped 1.1% to $4,422.91 per ounce by 10:50 a.m. EDT (1447 GMT), putting it on track for a mild weekly decline.

US job growth accelerated sharply in August, while the unemployment rate held steady at 4.1%, pointing to a still stable labor market and keeping an interest rate hike from the Federal Reserve this month on the table.

Short-term interest rate futures prices now imply about a 65% chance of an increase in the US policy rate at the Fed's September 15-16 meeting, up from about 55% before the Bureau of Labor Statistics report.