Gold Prices Tumble as Strong Jobs Data Boost Rate-Hike Bets

Gold prices dipped on Monday as strong U.S. jobs data reinforced expectations for higher interest rates, casting a shadow over its appeal.

The spot gold price was down 0.5% at $4,405.47 per ounce, while futures for December delivery were also down 0.5% at $4,452.20.

U.S. job growth accelerated sharply in August, with the unemployment rate holding steady at 4.1%, making a rate increase this month more likely.

However, analysts say that a strong inflation print due later this week will provide further clarity on the Federal Reserve's policy path and could reinforce expectations of a Fed hike.

As it stands, traders are pricing in a 58.4% chance of a rate hike at the Fed's September 15-16 meeting.