Gold Falls After Strong US Jobs Data Boosts Fed Rate Hike Expectations

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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.

Impact on assets 4

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⛏Gold Futures
GOLD
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Strong jobs data boosts Fed rate hike expectations, strengthening dollar and yields, pressuring gold.