Gold Price Falls Amid Hawkish Comments and Rate Hike Expectations

The gold price has retreated to near $4,400 per ounce following stronger-than-expected US non-farm payroll data. The data pushed up the probability of a September rate hike to nearly 60%, according to CME's FedWatch tool.

Federal Reserve officials have made hawkish comments, with Chairman Kevin Warsh stating that inflation is above the 2% policy target. However, some market participants believe that Washington politics may influence monetary policy decisions, potentially reducing the likelihood of rate hikes.

Gold ETFs saw a maximum increase of about 15% in August and have pulled back as investors take profits. Despite this short-term correction, experts argue that gold's long-term upward trend remains intact due to rising global debt crises and central banks' continued purchases of gold.