Gold prices fell today after the US released stronger-than-expected employment figures, which will support the Federal Reserve's decision to raise interest rates this month. Spot gold [GOLD.X] dropped $47.41, or 1.06%, to $4,445.19 per ounce, while COMEX gold futures for December delivery fell $54.31, or 1.21%, to $4,485.60 per ounce. The market was also pressured by a stronger dollar and a rebound in US Treasury yields following the jobs data, with the 2-year Treasury yield surging to 4.425%, the highest level since January 2025. Investors increased their bets on a Fed rate hike in September, with the CME Group's FedWatch Tool indicating a 60.2% probability of a 0.25% rate hike at the September meeting, up from 49.4% yesterday. The US Labor Department reported that nonfarm payrolls rose by 162,000 jobs in August, well above the 55,000 expected by analysts, while the unemployment rate held steady at 4.1%, in line with forecasts. Average hourly wages increased 3.1% year-over-year, exceeding the 3.0% forecast.
Strong jobs data boosts Fed rate hike expectations, raising yields.
Strong jobs data boosts Fed rate hike expectations, raising policy rate.
Strong jobs data boosts Fed rate hike expectations, raising yields.
