Gold prices declined on Monday as stronger-than-expected US employment data reinforced expectations of higher interest rates, while investors turned their attention to key US inflation data due later this week, APA reports citing Reuters.
Spot gold fell 0.6% to $4,402.86 per ounce as of 04:20 GMT, after declining 1% on Friday.
US gold futures for December delivery also dropped 0.6% to $4,447.60.
Data released on Friday showed that US job growth accelerated sharply in August, while the unemployment rate remained unchanged at 4.1%, indicating an improvement in the labor market and keeping the possibility of a September interest rate hike on the table.
US producer price index (PPI) data is due on Thursday, followed by consumer price index (CPI) figures on Friday.
Traders currently price in a 58.4% probability of a rate hike at the Federal Reserve’s September 15-16 meeting, according to CME’s FedWatch tool.
Higher interest rates generally reduce the appeal of non-yielding assets such as gold.
Among other precious metals, spot silver declined 0.6% to $65.80 per ounce, platinum fell 1.1% to $1,800.59, while palladium dropped 0.5% to $1,394.00.
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