Gold prices slip as strong US jobs data boosts rate-hike expectations

BAGHDAD, Iraq — Gold prices fell Monday after stronger-than-expected US employment data reinforced expectations that the Federal Reserve may raise interest rates. Spot gold declined 0.4% to $4,313.11 per ounce, while US gold futures for August delivery dropped 0.7% to $4,336.30 per ounce. Rising US Treasury yields increased the cost of holding gold, which does not pay interest, weighing on the precious metal. Kelvin Wong, senior market analyst at OANDA, said the market has adopted a more cautious stance on US interest rate expectations, which has pushed gold lower. The US economy added 172,000 jobs in May, giving the Fed room to maintain its tight monetary policy stance. According to CME's FedWatch tool, markets are pricing in a 72% probability of Fed rate hikes by year-end. Other precious metals also weakened, with silver down 0.4% to $67.56 and platinum falling 0.5% to $1,767.15 per ounce. Palladium held steady at $1,225.66.