Gold Prices Hold Steady as Rate Hike Prospects Rise

Gold prices held steady on Monday after stronger-than-expected US payrolls data raised the prospects for an interest-rate hike as early as next week. The metal was little changed near $4,430 an ounce, following a 1% decline in the previous session.

The data showed that US job growth surged in August, with the unemployment rate holding steady. This bolstered the argument for raising rates at the US Federal Reserve's September 15-16 meeting, which would make gold more expensive for many buyers.

Traders have increased their bets on a rate hike in September, pricing in a roughly 60% likelihood versus an even chance earlier in Friday's session. Higher borrowing costs are typically a headwind for non-yielding bullion, such as gold.