WS Investor
05 Sep 2026, 12:32
Gold Falls 1.4% as Strong U.S. Jobs Data Revives Fed Rate-Hike Fears
Gold prices fell sharply on Thursday as stronger-than-expected U.S. employment data pushed Treasury yields higher and strengthened expectations that the Federal Reserve could raise interest rates again.
December gold futures (GC=F) closed at $4,476.60, down $63.30, or 1.39%. Despite the daily decline, gold was nearly unchanged over the five-day period shown in the chart.
The selloff followed the August U.S. jobs report, which showed nonfarm payrolls rising by 162,000, far above expectations for 55,000. The unemployment rate remained at 4.1%, while private payrolls increased by 127,000.
Stronger labor-market data reduced expectations for a dovish Fed and increased the probability of another rate hike, pushing U.S. Treasury yields higher. Rising yields tend to pressure gold because the metal does not generate interest.
Gold had rallied earlier in the week after Fed Governor Christopher Waller signaled support for keeping rates unchanged if inflation continued to cool. Thursday’s jobs report challenged that narrative, triggering a sharp reversal from levels above $4,500.
The next direction for gold is likely to remain closely tied to Treasury yields and expectations for the Fed’s September policy decision.
Gold prices fell sharply on Thursday as stronger-than-expected U.S. employment data pushed Treasury yields higher and strengthened expectations that the Federal Reserve could raise interest rates again.
December gold futures (GC=F) closed at $4,476.60, down $63.30, or 1.39%. Despite the daily decline, gold was nearly unchanged over the five-day period shown in the chart.
The selloff followed the August U.S. jobs report, which showed nonfarm payrolls rising by 162,000, far above expectations for 55,000. The unemployment rate remained at 4.1%, while private payrolls increased by 127,000.
Stronger labor-market data reduced expectations for a dovish Fed and increased the probability of another rate hike, pushing U.S. Treasury yields higher. Rising yields tend to pressure gold because the metal does not generate interest.
Gold had rallied earlier in the week after Fed Governor Christopher Waller signaled support for keeping rates unchanged if inflation continued to cool. Thursday’s jobs report challenged that narrative, triggering a sharp reversal from levels above $4,500.
The next direction for gold is likely to remain closely tied to Treasury yields and expectations for the Fed’s September policy decision.
