Gold Slips as Fed Rate-Hike Bets Strengthen

2026-09-07 12:07 By Joana Ferreira 1 min. read

Gold fell to around $4,390 an ounce on Monday, with trading volumes subdued due to a US holiday, after a stronger-than-expected US jobs report pushed bond yields higher and boosted expectations for a Federal Reserve rate hike this month.

US nonfarm payrolls increased by 162,000 in August, well above market expectations for a 56,000 gain, while the unemployment rate held at 4.1%.

Traders now see nearly a 60% chance of a rate hike at the Fed’s policy meeting next week, up from about 50% before Friday’s jobs data, according to the CME FedWatch Tool.

Investors are now awaiting PPI and CPI data later this week for further clues on the Fed’s policy path.

Inflation concerns remain elevated, with crude oil prices touching a near three-month high after the US and Iran exchanged strikes on shipping over the weekend.

Meanwhile, China extended its gold-buying streak to a 22nd consecutive month in August, lifting its holdings to 76.73 million fine troy ounces.



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Gold Slips as Fed Rate-Hike Bets Strengthen
Gold fell to around $4,390 an ounce on Monday, with trading volumes subdued due to a US holiday, after a stronger-than-expected US jobs report pushed bond yields higher and boosted expectations for a Federal Reserve rate hike this month. US nonfarm payrolls increased by 162,000 in August, well above market expectations for a 56,000 gain, while the unemployment rate held at 4.1%. Traders now see nearly a 60% chance of a rate hike at the Fed’s policy meeting next week, up from about 50% before Friday’s jobs data, according to the CME FedWatch Tool. Investors are now awaiting PPI and CPI data later this week for further clues on the Fed’s policy path. Inflation concerns remain elevated, with crude oil prices touching a near three-month high after the US and Iran exchanged strikes on shipping over the weekend. Meanwhile, China extended its gold-buying streak to a 22nd consecutive month in August, lifting its holdings to 76.73 million fine troy ounces.
2026-09-07
Gold Drops Further on Fed Rate Hike Bets
Gold fell toward $4,400 an ounce on Monday, extending losses from the previous session, pressured by growing expectations of an imminent Federal Reserve interest rate hike following stronger-than-expected US jobs data last week. Data released Friday showed US nonfarm payrolls rose by 162,000 in August, following an upwardly revised increase of 23,000 in July and well above market expectations for a gain of 56,000. Meanwhile, the unemployment rate remained unchanged at 4.1%, while annual wage growth slowed to 3.1%, although the decline was smaller than economists had expected. Markets increased bets on a September Fed rate hike to roughly 60%, up from around 50% before the data release. Gold also remained under pressure from higher oil prices as the US and Iran exchanged strikes on ships over the weekend, stoking concerns about renewed inflationary pressures.
2026-09-07
Gold Slides as Strong US Jobs Data Fuels Rate Hike Bets
Gold fell 2% to around $4,380 an ounce on Friday as the dollar strengthened following stronger-than-expected US employment data, which boosted expectations for tighter monetary policy. US nonfarm payrolls rose by 162,000 in August, following an upwardly revised increase of 23,000 in July and significantly exceeding market expectations for a 56,000 gain. Meanwhile, the unemployment rate held steady at 4.1%, while annual wage growth eased to 3.1%, although the decline was smaller than markets had anticipated. The resilient labor-market data strengthened the case for tighter monetary policy, with money markets now pricing in a near 60% probability of a Federal Reserve rate hike in September, according to the CME FedWatch Tool.
2026-09-04