Gold slides more than 1% after stronger-than-expected US jobs data
Gold fell more than 1% to around $4,400 an ounce as the dollar strengthened after US nonfarm payrolls rose 162,000 in August, beating expectations. FedWatch pricing points to a near 58% September hike probability.
Gold fell more than 1% to around $4,400 an ounce on Friday as the dollar strengthened following stronger-than-expected US employment data, which boosted expectations for tighter monetary policy.
US nonfarm payrolls rose by 162,000 in August, following an upwardly revised increase of 23,000 in July and significantly exceeding market expectations for a 56,000 gain.
Meanwhile, the unemployment rate held steady at 4.1%, while annual wage growth eased to 3.1%, although the decline was smaller than markets had anticipated.
The resilient labor-market data strengthened the case for tighter monetary policy, with money markets now pricing in a near 58% probability of a Federal Reserve rate hike in September, according to the CME FedWatch Tool.