Gold slides after robust US payrolls boosts rate hike bets
Gold prices experienced a downturn on Friday, setting the stage for a weekly loss as solid US job data raised the bar for anticipated rate hikes by the Federal Reserve. This shift has rendered the non-yielding precious metal less desirable. Alongside gold, silver and platinum also saw drops. Investors are now keenly awaiting inflation updates for insights into policy adjustments.
Gold experienced a decline on Friday and was on track for a weekly loss after stronger-than-expected U.S. jobs data boosted expectations that the Federal Reserve could raise interest rates as early as this month. The spot price of gold fell by 1.1% to $4,422.91 per ounce, with U.S. gold futures for December delivery dropping 1.5% to $4,469.80 per ounce.
The U.S. added 423,000 jobs in August, while the unemployment rate remained steady at 4.1%, indicating a stable labor market and increasing the likelihood of a September rate hike by the Federal Reserve. The focus now shifts to next week's U.S. consumer and producer price inflation data, which could provide further insights into the Federal Reserve's policy path.
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