Gold slips as strong US jobs data boosts Fed hike bets

Spot gold and US gold futures fall 0.2% to $4,421.04 and $4,466.90, while silver slips 0.2% to $66.06; platinum rises 0.3% to $1,825.21 and palladium gains 1.1% to $1,401.84 Gold ‌eased on Monday after a robust U.S. jobs report bolstered expectations of a Federal Reserve interest rate hike this month, while investors awaited key inflation data for further clues on the monetary policy outlook. Spot gold ​fell 0.2% to $4,421.04 per ounce by 0835 GMT. U.S. gold futures for December ​delivery dropped 0.2% to $4,466.90, with trading volumes low due to a U.S. ⁠holiday. "Gold and silver have moved in the opposite direction to energy prices, extending their declines ​after Friday's strong U.S. jobs report lifted bond yields and reinforced expectations of a Fed ​rate hike on 16 September," said Ole Hansen, head of commodity strategy at Saxo Bank. "In today's session, gold has twice found buying interest below $4,400, well ahead of key support around $4,320, while resistance continues to emerge above $4,500." Data ​last week showed U.S. job growth accelerated sharply in August while the unemployment rate held ​steady at 4.1%. Traders see a 58% chance of an interest rate hike at the central bank's policy meeting ‌next ⁠week, according to the CME FedWatch Tool, compared with a probability of 50% before the jobs data was released on Friday. The U.S. producer price index data is due on Thursday and the consumer price index data is scheduled for the next day. Inflation worries remained high as ​a weekend exchange of ​strikes on shipping ⁠sent oil prices higher, while Iran said it will announce a new restricted zone in the Gulf in the coming days, along with maps ​of a new shipping corridor through the Strait of Hormuz. Although gold ​is typically seen ⁠as an inflation hedge, higher interest rates tend to diminish non-yielding bullion's appeal to investors. However, U.S. President Donald Trump on Friday said that unless the Fed cut rates, something that he has ⁠demanded previously, ​he would stop trading with countries with which the ​United States had a deficit. Among other metals, spot silver slid 0.2% to $66.06 per ounce, platinum rose 0.3% to $1,825.21, and ​palladium climbed 1.1% to $1,401.84.