Gold Prices Reprice Under Pressure from Strong US Jobs Data and Central Bank Gold Repatriation

Gold prices experienced significant volatility last week, influenced by a stronger-than-expected US employment report. The jobs data added to expectations of an imminent Federal Reserve interest-rate increase at its September meeting, pushing Treasury yields higher and exerting downward pressure on gold.

The spot price of gold traded as high as $4,511.08 per ounce before closing at $4,376.04, according to Dorex CEO John Kochanski. This repricing is consistent with the market's pattern established after Jackson Hole, where interest-rate expectations were also heightened.

Kochanski emphasized that gold remains sensitive to changes in US monetary policy and that this sensitivity can result in significant short-term price movements. However, he noted that longer-term investors are more concerned with whether these movements alter the underlying reasons for capital allocation toward gold.