Gold Prices Pressured by Stronger US Jobs Data and Interest-Rate Expectations

The price of gold and silver remained under pressure in early Asian trade on Monday, September 7. According to the latest available prices, COMEX gold was trading at around $4,456.50 an ounce, down 0.45%, while silver was at $66.685 an ounce, lower by 0.09%.

Investors are weighing stronger-than-expected US jobs data against expectations around the Federal Reserve's interest-rate path. The US Consumer Price Index (CPI) for August, due on September 11, is likely to be the biggest macro trigger for bullion markets this week.

A stronger-than-expected inflation reading could reinforce expectations that the Federal Reserve will keep interest rates higher for longer. Higher interest rates and bond yields generally reduce the appeal of gold because the metal does not generate interest income.

US Treasury 10-year yields were near 4.78% after last week's stronger jobs report increased expectations of a possible rate move by the Fed later this month. Markets are currently assigning a 58% probability to a rate hike at the Fed's September 16 meeting, according to market pricing.