Gold Eases as Strong US Jobs Data Boosts Rate-Hike Bets
New York - The price of gold eased on Monday following the release of strong US jobs data that boosted expectations for a Federal Reserve interest rate hike this month. Spot gold declined by 0.3% to $4,412.73 per ounce.
According to Ole Hansen, head of commodity strategy at Saxo Bank, 'gold and silver have moved in the opposite direction to energy prices, extending their declines after Friday's strong US jobs report lifted bond yields and reinforced expectations of a Fed rate hike on 16 September.'
The data showed that US job growth accelerated sharply in August, with the unemployment rate holding steady at 4.1%. Traders now see a 60% chance of an interest rate hike at the central bank's policy meeting next week, compared to 50% before the jobs data was released.