Gold Prices Tumble Amid Rate Hike Expectations and Inflation Data Looming

The gold price continued its decline from last Friday, but showed a tug-of-war between bulls and bears at the $4,400 level on Monday.

Strong U.S. employment data released last Friday instantly reinforced market bets on a Fed rate hike this month, pushing bond yields higher and putting pressure on non-yielding gold assets.

Investors are now digesting the short-term shocks from employment data, waiting for key inflation data to be released later in the week, and closely monitoring how shipping and energy conditions in the Gulf region can influence interest rate outlooks through inflation channels.