Gold drops 0.5% to $4,405.47 after strong U.S. payrolls data
U.S. job growth accelerated to 4.1% unemployment in August, reinforcing rate-hike expectations and weighing on gold prices as traders await Friday's CPI report.
Gold prices fell Monday, down 0.5% to $4,405.47 per ounce, following robust U.S. employment figures released on Friday. The latest jobs report showed labor market acceleration while the unemployment rate remained steady at 4.1%. This data kept hopes for a September interest rate increase alive but created pressure on non-yielding assets like bullion. Gold futures for December delivery also dropped 0.5% to $4,452.20. Tim Waterer, chief market analyst at KCM Trade, noted the jobs number offered an upside surprise that put strain on the metal but highlighted that a complete slam dunk for a rate hike remains unproven. He added that real clarity will arrive this week with upcoming U.S. inflation data, specifically the producer and consumer price indices scheduled for Thursday and Friday respectively.
