Gold prices fell more than 2% on Friday after US jobs data came in stronger than expected, leading investors to increase expectations that the Fed may raise interest rates this month. Spot gold fell 2.2% to $4,376.04 per ounce and was on track for a weekly decline of about 1%. Meanwhile, US gold futures for December delivery fell 2.4% to $4,428.80 per ounce. August job gains were substantial, and the unemployment rate held steady at 4.1%, reflecting a stable labor market. This prompted investors to raise the odds of a Fed rate hike this month to around 65% from 55%. In the domestic market, gold prices opened unchanged today, with gold ornaments selling at 69,950 baht per baht-weight and gold bars selling at 69,150 baht per baht-weight. Gold Spot stood at $4,432.00 per ounce.
Strong jobs data raises Fed rate hike odds, pushing policy rate expectations up.
Higher rate hike odds likely lift yields, lowering bond prices.
