Spot gold dropped with employment data and markets focused on the Fed meeting
Following the strong US employment data, spot gold fell to $4,430, while investors locked onto critical inflation data and the Fed's interest rate decision.
Spot gold dropped to $4,430 following the non-farm payrolls data in the US exceeding expectations and changing expectations for the Fed's interest rate policy. In the new week, investors focused on oil prices, US inflation data, and the Fed meeting scheduled for September 15-16.
Employment data pressured gold prices
Data released regarding the labor market in the US played an effective role in determining the direction of gold prices.
In August, non-farm payrolls increased by 162 thousand, while the unemployment rate materialized at 4.1 percent.
Expectations for the Fed's interest rate policy shifted
Following the strong employment data, the markets' expectations regarding the US Federal Reserve's interest rate policy also transformed.
The probability of the Fed raising interest rates at its September meeting rose from around 55 percent to approximately 65 percent.
Critical US inflation data awaited
One of the most important agenda items for the markets in the new week will be the inflation data coming from the US.
Producer prices will be announced on Thursday, September 10, and consumer prices on Friday, September 11 at 3:30 PM.
Oil prices and technical levels
While developments in the Middle East keep energy supply concerns alive, the price of WTI crude oil per barrel became $91.48.
For spot gold, the $4,400 level is being monitored as a critical support point.