Gold has fallen below a key price level as fresh economic data puts pressure on the precious metal. A strong U.S. jobs report has traders raising their bets that the Federal Reserve will hike interest rates later this month.
Spot gold fell 0.7% to $4,398.89 an ounce on Monday. Gold futures also dropped 0.7% to $4,444.11. The metal had already lost 1% on Friday before slipping further at the start of the week.
The move lower came after the U.S. Labor Department reported that employers added 162,000 jobs in August. That number topped analyst forecasts. The unemployment rate held steady.
A strong labor market gives the Federal Reserve more room to raise interest rates. Higher rates tend to hurt gold because they make other assets, like bonds, more attractive by comparison.
Markets are now pricing in roughly a 60% chance of a 25 basis point rate hike at the Fed’s September 15-16 meeting. That is up from lower odds before Friday’s jobs data was released.
Rate hike odds surge to 67%, back to post-Jackson Hole highs https://t.co/GuQcjPjeSR pic.twitter.com/CR2TXXnasq
— zerohedge (@zerohedge) September 4, 2026
Analysts at ING noted in a client note that the expected rate hike should give some temporary support to the dollar, particularly against low-yielding currencies.
A stronger dollar adds pressure on gold. Because gold is priced in dollars, a rising greenback makes the metal more expensive for buyers using other currencies.
Earlier in the week, private payroll firm ADP reported only 38,000 new jobs in August, well below expectations. That softer reading had briefly helped gold snap a three-session losing streak on September 2.
Front month gold had risen 0.4% to $4,366.30 that day, and silver edged up 0.2% to $64.72 an ounce, before the stronger official payrolls report reversed the mood.
Oil prices are also in focus. Iran said it targeted three oil tankers in the Strait of Hormuz, along with other vessels linked to the United States. The move came in response to American attacks on ships over the weekend.
Brent crude was trading near $97 a barrel. Higher energy prices can feed into broader inflation, which may push the Fed to keep rates higher for longer.
Gold has stayed in a relatively tight range since bouncing off a floor near $4,000 in July. Last week, the metal fell below its 200-day moving average near $4,526, which caused some short-term technical damage.
The next major price tests come later this week. U.S. producer price data is due Thursday, followed by consumer price data on Friday. Strong inflation readings could push rate hike bets even higher and add further pressure on gold.
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