Gold Tumbles as Strong Jobs Report Fuels Rate Hike Bets

The price of gold slid 1% on Friday to $4,430.61/oz after a strong US jobs report boosted expectations of a Federal Reserve rate hike later this month.

Anticipation of higher interest rates tends to weigh on non-yielding assets like gold and strengthen the dollar, making bullion more expensive for foreign buyers.

The U.S. Bureau of Labor Statistics reported that 162k jobs were added in August, nearly triple the expected 55k, with the unemployment rate remaining unchanged at 4.1%.

The strong labor market data and stubbornly high inflation have led to increased bets on a Fed rate hike, which rose to around 58% according to the CME FedWatch tool.