Commodities
Gold Slumps as Strong US Jobs Data Raises Rate Hike Fears
Gold prices dropped by 0.6% to $4,402.86 per troy ounce at 04:20 GMT after strong US employment data increased the likelihood of a Federal Reserve rate hike.
US job growth accelerated sharply in August, with the unemployment rate holding steady at 4.1%. This solid labour market condition revived speculation about a Fed interest rate increase on September 15-16.
KCM Trade Chief Market Analyst Tim Waterer said strong inflation data could further boost expectations of a rate hike and drive bond yields higher, putting more pressure on gold.
US President Donald Trump urged the Fed to cut interest rates on Friday, while Iran announced it would intensify efforts to mitigate the impact of US sanctions.