Gold Falls Amid Rising Hopes of September Rate Hike

Gold prices fell on Friday and are headed for a weekly decline after the US jobs data showed stronger-than-expected job growth in August. The robust report boosted expectations that the Federal Reserve could raise interest rates as soon as this month, making non-yielding bullion less appealing.

The spot price of gold dropped 1.1% to $4,422.91 per ounce by 10:50 a.m. EDT (1447 GMT), while US gold futures for December delivery fell 1.5% to $4,469.80 per ounce.

Independent analyst Tai Wong said the strong jobs report makes a September rate hike 'much more likely unless we get a weak CPI report.'

The focus now shifts to next week's US consumer and producer price inflation data, which could provide further clues on the Federal Reserve's policy path.