Gold prices eased in international markets on Monday, 7 September, as a surprisingly robust US jobs report heightened expectations that the Federal Reserve might raise interest rates during its upcoming policy meeting. Investors are treading cautiously, awaiting key inflation metrics due later this week to gauge the future trajectory of monetary policy.
Spot gold slipped 0.2 per cent to $4,421.04 per ounce by 2:35 pm Bangladesh time, whilst US gold futures for December delivery similarly edged down 0.2 per cent to $4,466.90 per ounce. Trading volumes remained relatively thin throughout the session owing to a public holiday in the United States.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, noted that Friday’s strong US employment data pushed bond yields higher and solidified market expectations that the Federal Reserve could raise interest rates on 16 September. This shift put downward pressure on precious metals, pulling gold and silver lower even as energy markets trended upwards.
Hansen observed that buying interest re-emerged after spot prices dipped below $4,400 per ounce twice during Monday’s trading. Analysts view $4,320 per ounce as a critical technical support level, whereas breaches above $4,500 per ounce could trigger renewed selling pressure.
Data released last week revealed a notable surge in US job growth for August, whilst the unemployment rate held steady at 4.1 per cent. According to the CME FedWatch Tool, traders now price in a 58 per cent probability of a rate hike at the Fed’s upcoming meeting, up from 50 per cent prior to the jobs report.
Market participants are turning their focus to the US Producer Price Index (PPI) due on Thursday, followed by the Consumer Price Index (CPI) report on Friday. These inflation figures will heavily influence the central bank’s rate decisions. High interest rates typically weigh on gold, as the non-yielding asset becomes less attractive compared to interest-bearing instruments.
Adding to the economic backdrop, US President Donald Trump reiterated his calls for lower interest rates on Friday, warning that he might sever trade ties with countries running significant trade surpluses with the US if the central bank fails to ease monetary policy. Meanwhile, escalating geopolitical tensions in the Middle East—marked by attacks on shipping and Iran’s announcement of a new maritime route near the Strait of Hormuz—pushed crude oil prices higher, stoking broader inflationary concerns.
In other precious metals trading, spot silver fell 0.2 per cent to $66.06 per ounce. Conversely, platinum gained 0.3 per cent to trade at $1,825.21 per ounce, while palladium rose 1.1 per cent to $1,401.84 per ounce.
