Gold Prices Slide as Strong US Jobs Data Boosts Rate Hike Expectations

The US non-farm payrolls report for August exceeded market expectations by nearly triple, increasing by 162,000 jobs. This significant rise led to higher US Treasury yields and a stronger US dollar, which put downward pressure on gold prices.

The increased expectation of a Federal Reserve rate hike in September also contributed to the decline in gold prices. As interest rates are expected to rise, investors tend to favor assets that yield returns, such as bonds, over non-interest-bearing gold.

The technical analysis suggests that gold is currently in a consolidation phase and may face further downward pressure if it fails to hold above $4,300. However, if gold stabilizes above this level, its short-term bullish trend will remain intact.