Gold Prices Slide Amid Rate Hike Expectations
Gold prices slipped on Monday as strong US jobs data reinforced expectations for higher interest rates. The data showed that US job growth accelerated sharply in August, and the unemployment rate held steady at 4.1%. This improvement in the labour market kept a rate increase this month on the table.
The country's producer price index data is due on Thursday, while the consumer price index (CPI) data is scheduled for Friday. These reports will provide further clarity on the Federal Reserve's policy path.
Tim Waterer, chief market analyst of KCM Trade, said, 'The jobs number delivered a clear upside surprise and put some pressure on the metal, but it wasn't a complete slam dunk for a September rate hike. The real missing piece of the puzzle arrives this week with the US CPI.'