Gold Prices Tug-of-War at $4400 Amid Rate Hike Expectations

Gold prices continued their decline from last Friday, but showed a tug-of-war between bulls and bears at the $4400 level on Monday.

The strong U.S. employment data released last Friday reinforced market bets on a Fed rate hike this month, pushing bond yields higher and putting pressure on non-yielding gold assets.

Investors now need to digest the short-term shocks from employment data, wait for this week's key inflation data to be released, and closely monitor how shipping and energy conditions in the Gulf region can influence interest rate outlooks through inflation channels.

The U.S. August nonfarm payroll report showed new jobs reached 162,000, far exceeding market expectations, while the unemployment rate remained steady at 4.1%.