FX.co ★ 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 after US employment data came in stronger than expected, heightening expectations of tighter monetary policy. US nonfarm payrolls increased by 162,000 in August, following an upwardly revised gain of 23,000 in July and far surpassing market forecasts for a 56,000 rise. At the same time, the unemployment rate remained unchanged at 4.1%, while annual wage growth slowed to 3.1%, though the moderation was less pronounced than markets had anticipated. The robust labor-market figures reinforced the case for further monetary tightening, with money markets now assigning nearly a 58% probability to a Federal Reserve rate hike in September, according to the CME FedWatch Tool.