Gold Price Dives as Strong NFP Data Bolsters Fed Hike Odds

Strong Nonfarm Payrolls (NFP) data released on Friday has reignited speculation that the Federal Reserve may resume its tightening cycle if inflation reaccelerates late this week, while the labor market remains solid.

The US economy added 162K jobs in August, exceeding forecasts of 56K. The Unemployment Rate remained steady at 4.1%.

Following the report, US Treasury yields rose, pushing the US Dollar Index (DXY) up by 0.25%, although it later fell to 98.91.

The increased odds of a Federal Reserve interest rate hike at the September 15-16 meeting rose to 60% according to Prime Terminal.