Gold falls below $4,390 on robust US jobs report

September 07, 2026 (MLN): Gold prices edged lower on Monday, weighed down by a stronger-than-expected US jobs report that bolstered expectations of higher interest rates, as investors turned their attention to key US inflation figures due later in the week for further direction on the Federal Reserve's policy stance.

Currently, spot gold is down 0.9% to $4,389.7 an ounce as of [11:01 am] PST, according to data reported by Mettis Global.

The pullback followed data released Friday showing US job growth picked up sharply in August, even as the unemployment rate held steady at 4.1%, pointing to a labour market recovery and keeping the possibility of a rate hike this month firmly in play, according to CNBC.

Markets now await the producer price index (PPI) reading on Thursday, followed by the consumer price index (CPI) print on Friday, both seen as critical inputs for the Fed's next move.

According to CME's FedWatch tool, traders are currently pricing in a 58.4% probability of a rate hike at the Fed's September 15-16 policy meeting. Gold, while traditionally seen as a hedge against inflation, tends to lose its appeal when interest rates rise, as higher rates increase the opportunity cost of holding non-yielding bullion.

Adding to the mix, US President Donald Trump said Friday that he would halt trade with countries running a surplus against the US unless the Fed moves to cut interest rates.

On the geopolitical front, Iran said it would intensify efforts to counter the fallout from crippling US sanctions on its economy, even as a senior official cautioned of a "painful response" should the country face further attacks.

Among other precious metals, spot silver eased 0.2% to $66.03 per ounce, platinum fell 0.8% to $1,805.53, and palladium declined 0.7% to $1,396.08.

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