Gold Recovers From Brutal Selloff as Markets Brace for Key Inflation Data

Gold prices have recovered some losses after a brutal selloff sparked by stronger-than-expected employment data, which saw 162,000 jobs created in August. The robust job growth pulled gold down more than $100 within the first 30 minutes of the report.

Analysts note that the Federal Reserve has room to focus on price stability and try to bring inflation pressures down due to a relatively healthy labor market.

Next week's inflation data will be crucial for the Fed, with some analysts warning that hotter-than-expected readings could strengthen the case for a rate hike. This would likely create another headwind for gold.