Gold Slumps as Strong US Jobs Report Revives Rate Hike Expectations

Gold prices plummeted on Monday after the US jobs report revealed stronger-than-expected employment gains, sparking concerns that the Federal Reserve may raise interest rates this month.

The strong payrolls data showed employers added 162,000 jobs in August, while unemployment held at 4.1%. This revised expectations for a September rate hike and put the focus on this week's inflation data.

Futures markets were assigning a 58% probability to a rate increase at the September 15-16 meeting.

Peter Grant, senior metals strategist at Zaner Metals, said persistently firm inflation data could strengthen expectations for another Fed increase, creating additional pressure on gold.