Gold prices plunged even more after seeing a very encouraging reading of US NFP jobs data, causing the precious metal to plunge to a more than four -month low in the Asian session today.
Spot gold traded down 1.4% at $ 1,738 an ounce. At the beginning of the session, gold prices hit their lowest reading since March 31 at $ 1,687 per ounce.
According to the latest data released by the U.S. Department of Labor, jobs reportedly increased by 943,000 in July, far better than market expectations, making it the highest increase in nearly a year.
In addition, the US unemployment rate also showed positive progress by declining to 5.4% from 5.9% recorded previously, and 5.7% of market expectations.
Following this positive reading, it re -ignited market expectations for the Federal Reserve (Fed) to make a reduction in its bond purchases faster than expected.
Earlier, the Fed often cited the downturn in the labor market as the reason for their decision to slow the tightening of monetary policy despite soaring inflation.
With a statement from Fed Vice Chairman Richard Clarida last week, this further strengthened market expectations that the central bank would take tightening measures soon.
10 -year U.S. bond yields rose higher at 1.30% and U.S. dollar trading also strengthened against most other major currencies, causing gold to weaken.
