Gold slides after robust US payrolls boosts rate hike bets
GLD•Other precious metals also fall
Among other metals, spot silver XAG= fell 1.7% to $65.79 per ounce, platinum XPT= slipped 0.8% to $1,811.83 per ounce, and palladium XPD= dropped 1.6% to $1,397.75. All three metals were headed for a weekly decline.
Analysts see CPI data as the next driver
"Gold stumbles badly as a huge headline print, and an overall strong report, makes a September rate hike much more likely unless we get a weak CPI report," independent analyst Tai Wong said.
Short-term interest rate futures prices now imply about a 65% chance of an increase in the U.S. policy rate at the Fed's Sept. 15 to 16 meeting, up from about 55% before the Bureau of Labor Statistics report.
The focus now shifts to next week's U.S. consumer and producer price inflation data, which could provide further clues on the Federal Reserve's policy path.
"This latest jobs report follows Chair Warsh's hawkish speech at Jackson Hole and appears to have cracked the door even wider for the Fed to follow through with its hiking bias, perhaps as soon as this month," said Han Tan, chief market analyst at Bybit.
"With the price stability mandate at the forefront of policymakers' minds, next week's U.S. CPI prints may yet trigger bigger moves for the precious metal," added Han.
Meanwhile, the U.S. dollar jumped after the report, making greenback-denominated gold more expensive for holders of other currencies. USD/
Gold falls as strong US jobs data lifts rate hike expectations
Sept. 4 (Reuters) - Gold fell on Friday and was headed for a weekly loss after stronger-than-expected U.S. jobs data boosted expectations that the Federal Reserve could raise interest rates as soon as this month, denting non-yielding bullion's appeal.
