Gold Stabilizes Near $4,400 Amid Strong Payrolls and Hormuz Tensions
Gold prices held steady near $4,400 an ounce on Monday as stronger-than-expected US payrolls and renewed tensions around the Strait of Hormuz raised expectations for a Federal Reserve rate hike.
The US added 162,000 jobs in August, topping forecasts, while the unemployment rate remained steady. This bolstered the case for a September rate hike, with markets now pricing a 60% probability.
A stronger dollar also weighed on gold, making it more expensive for buyers using other currencies. The latest move follows a volatile week, during which gold traded on both sides of $4,400 as investors adjusted their expectations for Fed policy.
The next key signal will come from US consumer price data due later this week, which could influence the Fed's rate decision. Meanwhile, tensions around the Strait of Hormuz have raised fresh concerns about energy flows and inflation pressures, with oil prices trading near $97 a barrel.