US Job Growth Spurs Gold Price Decline Amid Rate Hike Bets

Gold prices have dipped as robust US payrolls data reinforced expectations for higher interest rates. According to data released on Friday, US job growth accelerated sharply in August, while the unemployment rate remained steady at 4.1%. This has led market participants to anticipate a possible rate hike by the Federal Reserve (Fed) this month.

US gold futures for December delivery dropped 0.5% to $4,452.20, and spot gold declined 0.5% to $4,405.47 per ounce as of 0211 GMT. Traders are pricing in a 58.4% chance of a rate hike at the Fed's September 15-16 meeting.

Tim Waterer, chief market analyst at KCM Trade, noted that while the jobs number delivered an upside surprise and put pressure on gold, it wasn't a complete slam dunk for a September rate hike. However, he emphasized that a strong inflation print would reinforce expectations of a Fed hike, lift yields further, and weigh more heavily on gold.