Gold Prices Plummet Below $4,500 After Strong US Job Growth

Gold's price fell below $4,500 after the US Nonfarm Payrolls (NFP) report showed stronger-than-expected job growth. The July payrolls were revised from a decline of 23,000 to an increase of 21,000, while August's payrolls rose by 162,000, nearly three times the consensus forecast.

The stronger employment data boosted expectations for a September Federal Reserve rate hike, putting pressure on the US dollar and Treasury yields. This, in turn, weighed on gold prices, causing them to decline more than 1% after trading above $4,500 before the NFP release.

The upcoming US inflation data will be crucial in determining whether the strong labor market translates into higher expectations for another Fed rate hike. If August's inflation remains high, it could strengthen expectations for a September rate hike, potentially keeping gold prices below $4,500 and maintaining pressure on the $4,390 support area.