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

Spot gold fell 0.9% to $4,389.7 an ounce on Monday, according to Mettis Global, after a US jobs report came in stronger than expected and boosted bets on higher rates. US hiring grew strongly in August while unemployment remained at 4.1%, according to CNBC, keeping the prospect of an increase this month on the table. Higher rates raise the cost of holding bullion, which pays no yield, so the metal tends to lose its appeal.

According to CME's FedWatch tool, markets put a 58.4% chance on a rate increase when the Fed meets on September 15-16. Inflation data is next, with producer prices due Thursday and consumer prices on Friday, both closely watched for the Fed's next step. Trump also threatened on Friday to halt trade with countries running surpluses against the US unless the Fed lowers borrowing costs.

Other precious metals also softened, with spot silver down 0.2% at $66.03 an ounce, platinum 0.8% lower at $1,805.53 and palladium 0.7% lower at $1,396.08. Iran also pledged greater action to limit the damage from severe US sanctions on its economy.