Gold Prices Dip Amid Strong US Job Data and Rate Hike Expectations

Gold prices dipped on Monday as robust US job data reinforced expectations for higher interest rates. Spot gold was down 0.5% at $4,405.47 per ounce, while US gold futures for December delivery were down 0.5% at $4,452.20.

The strong US jobs report showed a sharp acceleration in job growth and an unchanged unemployment rate of 4.1%. This has kept the possibility of a September rate hike by the Federal Reserve on the table, according to Tim Waterer, chief market analyst at KCM Trade.

The real test for gold prices will come this week with the release of US inflation data, specifically the consumer price index (CPI) on Friday. A strong inflation print could reinforce expectations of a rate hike and weigh heavily on gold, which is typically seen as an inflation hedge but tends to lose appeal in a higher interest rate environment.