Gold Slumps Below $4,400 on Strong US Jobs Data

The gold price has fallen below $4,400 as strong US jobs data boosted expectations of a Federal Reserve rate hike. The US Nonfarm Payrolls (NFP) climbed by 162K in August, beating market expectations of 56K and fueling bets on a September rate hike.

According to the CME FedWatch tool, markets are now pricing in a roughly 58.3% likelihood of a rate hike this month, up from an even chance earlier in the session. This has dented the appeal of non-yielding bullion, with gold prices tumbling to near $4,395.

Analyst Tai Wong noted that 'Gold stumbles badly as a huge headline print... makes a September rate hike much more likely unless we get a weak CPI report.'