Spot gold prices fell by up to 2.4% on Thursday, settling near $4,400 per ounce. The decline followed the Bureau of Labor Statistics report on August employment, which showed a stronger labor market than expected.
US nonfarm payrolls increased by 162,000 in August, which is approximately three times the consensus forecast of 53,000 to 65,000. The unemployment rate remained steady at 4.1%.
Previous data was revised upward: June gained an additional 31,000 jobs and July added 21,000 more than previously reported. Average hourly earnings grew by 0.3% month-over-month and 3.1% year-over-year.
Treasury yields and the US dollar strengthened following the data. Markets are now pricing in a 60% probability of a Federal Reserve interest rate hike at the September meeting, up from 50% before the report.
