Rate Hike Expectations Send Gold Prices into Turmoil

The recent jobs report showed an unexpected surge in employment numbers, adding 156,000 jobs and exceeding expectations by nearly triple. This has significantly increased rate-hike expectations for next week to around 60%. Higher interest rates have a detrimental effect on non-yielding metals like gold.

Kevin Warsh's hawkish remarks at Jackson Hole last Friday also contributed to the market's current sentiment. The market is currently trading near its 50-day and 200-day EMA indicators, which could lead to some volatility in the short term.

The US CPI numbers this week will be a crucial event, but it's likely that the Fed meeting next week will have more significance for gold prices. In the short term, gold remains relatively neutral due to changing Treasury yields and rate expectations.