Gold Price Falls Below $4,400 After Strong U.S. Jobs Report Boosts Fed Rate Hike Odds
TLDR
- Gold dropped below $4,400 after a stronger-than-expected U.S. jobs report
- U.S. employers added 162,000 jobs in August, beating expectations
- Markets now price a 60% chance of a Fed rate hike on September 15-16
- Rising oil prices near $97 a barrel are adding to inflation concerns
- Key inflation data due Thursday and Friday could shift rate hike expectations
Gold has fallen below a key price level as fresh economic data puts pressure on the precious metal. A strong U.S. jobs report has traders raising their bets that the Federal Reserve will hike interest rates later this month.
Spot gold fell 0.7% to $4,398.89 an ounce on Monday. Gold futures also dropped 0.7% to $4,444.11. The metal had already lost 1% on Friday before slipping further at the start of the week.
The move lower came after the U.S. Labor Department reported that employers added 162,000 jobs in August. That number topped analyst forecasts. The unemployment rate held steady.
A strong labor market gives the Federal Reserve more room to raise interest rates. Higher rates tend to hurt gold because they make other assets, like bonds, more attractive by comparison.
… Continue reading the full article at the original source below.
