Spot Gold Slumps Below $4,400 Amid US Labor Data and Rate Hike Fears

Spot gold is trading at around $4,400 per troy ounce after a multi-week correction that has put pressure on the market. Despite this short-term setback, major financial institutions and long-term forecasters remain structurally bullish on the yellow metal's broader trajectory.

The recent sell-off was driven by strong U.S. employment figures for August, which pushed gold below its key $4,400 threshold. The robust labor data, combined with hawkish commentary from Federal Reserve leadership, lifted the implied probability of a rate hike at the upcoming September 15-16 FOMC meeting to roughly 60%.

Higher interest rate expectations strengthened the U.S. dollar and increased the opportunity cost of holding non-yielding bullion, making gold more expensive for foreign buyers. Analysts note that gold is in an 'elongated pause' after its aggressive prior run, forcing bulls to defend key moving averages before establishing a clean path back toward all-time highs.