Gold Prices Stuck as US Jobs Report Boosts Rate Hike Odds
Gold prices are stuck in a tight range between $4,366 and $4,450 as investors weigh the implications of the latest U.S. jobs report.
The August NFP showed 162,000 jobs added, more than triple the estimated 56,000, with an unemployment rate remaining at 4.1%. This has increased expectations for a September interest rate hike by the Fed to about 62%.
However, higher oil prices and inflation concerns are also on the rise, particularly after Iran's tensions with the U.S. led Brent and WTI to increase by 7.6% and 10%, respectively.
The coming week's inflation data will be crucial in determining the direction of gold prices, as strong inflation may support a Fed-driven rate hike and potentially weigh on gold, while weak inflation could provide some relief for gold investors.