Gold Slumps as Strong US Jobs Data Boost Rate-Hike Bets
Gold prices dropped on Monday as strong US jobs data reinforced expectations for higher interest rates. The Federal Reserve's policy path is now in question, with market participants awaiting key inflation prints due later this week.
The spot gold price fell 0.5% to $4,405.47 per ounce, while US gold futures for December delivery were down 0.5% at $4,452.20.
US job growth accelerated sharply in August, with the unemployment rate holding steady at 4.1%. This has kept a rate increase this month on the table, despite some uncertainty.
'The jobs number delivered a clear upside surprise and put some pressure on the metal,' said Tim Waterer, chief market analyst at KCM Trade. 'A strong inflation print would reinforce expectations of a Fed hike, lift yields further and weigh more heavily on gold.'