Gold eases as robust US payrolls boost rate-hike bets; inflation data in focus

Gold prices slipped on Monday, according to Business Recorder, as strong US employment figures strengthened bets on higher interest rates. Spot gold fell 0.5% to $4,405.47 per ounce by 0211 GMT, having dropped 1% on Friday, while December gold futures stood 0.5% lower at $4,452.20.

Friday's figures showed American payrolls grew sharply in August while joblessness stayed at 4.1%, pointing to an improving labour market after recent struggles. Traders now put a 58.4% chance on a rate hike at the Fed's September 15-16 meeting, based on CME's FedWatch tool. US producer price data arrives Thursday, with consumer price figures due the following day.

KCM Trade's chief market analyst Tim Waterer called the jobs number a clear upside surprise but not decisive for a September hike. He said a strong inflation reading would lift yields and pressure bullion further, making this week's CPI release the missing piece. Silver eased 0.2% to $66.03 per ounce, platinum lost 0.8% to $1,805.53 and palladium declined 0.7% to $1,396.08.