Gold prices fell as much as 2.4% Thursday, settling near $4,400 per ounce, after a US employment report beat expectations by a wide margin. Nonfarm payrolls surged by 162,000 in August, roughly tripling the consensus forecast of 53,000 to 65,000, while the unemployment rate held steady at 4.1%. Prior months were also revised upward, with June gaining 31,000 and July adding 21,000 jobs more than initially reported. Markets now price in roughly a 60% probability of a Federal Reserve rate hike at its September meeting, up from about 50% before the report. Rising rates make gold less attractive as an asset that generates no income becomes less competitive relative to bonds and other yield-bearing instruments.
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