Gold Prices Tumble on Rising Rate Hike Expectations

Gold prices fell in European trading on Monday, extending losses for a second consecutive day after strong US employment data increased expectations for a US interest rate hike in September.

The price of gold declined by 1.0% to $4,385.34 from an opening level of $4,430.18, with a session high of $4,435.24 recorded earlier.

A weaker dollar helped limit the precious metal's losses, as the US dollar index fell around 0.2% on Monday.

US job growth accelerated in August, while the unemployment rate held steady at 4.1%, according to data released on Friday.

The probability of a Federal Reserve interest rate hike rose from 49% to 58% following the strong employment data, with key US inflation data for August due this week providing crucial clues about the Fed's path.