Gold Falls as Strong US Jobs Data Raises Rate Hike Prospects

Gold prices tumbled to near $4,395 in early Asian session trading on Monday after robust US employment data boosted expectations of a Federal Reserve rate hike.

The US Nonfarm Payrolls (NFP) climbed by 162K in August, beating market expectations of 56K and increasing the likelihood of a September rate hike.

Independent analyst Tai Wong said, 'Gold stumbles badly as a huge headline print, and an overall strong report, makes a September rate hike much more likely unless we get a weak CPI report.'

Markets are now pricing in a roughly 58.3% likelihood of a rate hike in September, according to the CME FedWatch tool.