Gold slips near $4,390 after jobs data lifts Fed hike odds
Gold fell to around $4,390 an ounce on Monday after stronger-than-expected US jobs data pushed bond yields higher. Nonfarm payrolls rose 162,000 in August; unemployment held at 4.1%.
Gold fell to around $4,390 an ounce on Monday, with trading volumes subdued due to a US holiday, after a stronger-than-expected US jobs report pushed bond yields higher and boosted expectations for a Federal Reserve rate hike this month. US nonfarm payrolls increased by 162,000 in August, well above market expectations for a 56,000 gain, while the unemployment rate held at 4.1%. Traders now see nearly a 60% chance of a rate hike at the Fed’s policy meeting next week, up from about 50% before Friday’s jobs data, according to the CME FedWatch Tool. Investors are now awaiting PPI and CPI data later this week for further clues on the Fed’s policy path.
Inflation concerns remain elevated, with crude oil prices touching a near three-month high after the US and Iran exchanged strikes on shipping over the weekend. Meanwhile, China extended its gold-buying streak to a 22nd consecutive month in August, lifting its holdings to 76.73 million fine troy ounces.