Gold Falls as Strong Jobs Data Boosts Rate Hike Odds

Gold prices fell on Friday as stronger-than-expected U.S. jobs data raised expectations of a September rate hike by the Federal Reserve.

The U.S. economy added 162,000 jobs in August, well above the estimated gain of about 53,000, while the unemployment rate remained at 4.1%.

This marked a stronger-than-expected rebound from July, when payrolls had initially been reported as falling by 23,000.

The jobs report also led to an increase in Treasury yields, particularly shorter-term, more rate-sensitive instruments, with the 2-year yield rising 5.5 basis points to 4.389% and the benchmark 10-year yield climbing 2.2 basis points to 4.784%.