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Gold falls more than 0.4% after strong US jobs report boosts Fed hike bets

Nonfarm Payrolls came in at 162K in August, above forecasts, while the unemployment rate held at 4.1%.

Reported · Written up by our desk · Major Pairs

Gold prices pulled back on Monday, with XAU/USD dropping more than 0.4% after last Friday’s US jobs report revived expectations that the Federal Reserve could resume tightening.

FXStreet said the August Nonfarm Payrolls exceeded forecasts at 162K, beating an estimate of 56K, and the prior month’s figure was revised upward from -23K to 21K. The same release kept the unemployment rate steady at 4.1%.

Following the report, US Treasury yields rose and pushed the US dollar higher, with the US Dollar Index down 0.25% at 98.91. Money markets reportedly raised the odds of a September 15-16 rate hike to 60%, according to Prime Terminal.

Looking ahead, traders are set to watch US producer-side data on Thursday and the CPI on Friday, while the article also flagged upcoming releases including jobless claims, the US Monthly Budget Statement, and University of Michigan consumer sentiment. It also noted technical levels for gold, including support near the 100-day SMA around $4,350 and first downside support near $4,400.

Latest closeGold $4,431.70 ▲1.9%|Dollar index 99.58 ▼0.1%

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