Strong Jobs Report Sends Gold Prices Below $4,400
The strong U.S. jobs report released on Friday exceeded expectations, with 162,000 jobs added in August. This data has fueled bets that the Federal Reserve will raise interest rates next week, with market odds now at around 60%. As a result, gold prices have fallen below $4,400 per ounce.
The nonfarm payrolls data showed that the U.S. economy remains in a cyclical expansion phase, supported by accommodative policy and the artificial intelligence infrastructure investment boom. With labor supply constrained, the unemployment rate could continue to decline, and wages face upward pressure.
Middle East tensions have also contributed to higher oil prices, which are now at $97 per barrel. This has intensified inflation concerns, giving the Federal Reserve more reason to tighten policy. The market is now focusing on this week's U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) releases, which will serve as critical reference points for the Federal Reserve's rate decision.
Analysts believe that if price data shows persistent inflationary pressure, rate hike expectations will strengthen further, and gold could test support levels below $4,400 per ounce. Conversely, if inflation shows signs of moderating, pressure on gold could temporarily ease.