Gold breaks $4,400 as strong US jobs data cools rate-cut bets

Gold slid through key support at $4,400 an ounce after the US labor market added 162,000 jobs in August, a stronger-than-expected print that dims the outlook for rapid Federal Reserve rate cuts.

Nonfarm payrolls increased by 162,000 last month, the strongest gain since March, while the unemployment rate held at 4.1 percent for a second straight month, the Bureau of Labor Statistics reported.

Job growth was broad-based, led by food services and drinking places at 59,000, government education at 42,000, construction at 22,000 and manufacturing at 16,000. The official count contrasts with ADP's estimate of 38,000 private payrolls for August, released earlier in the week.

The break below $4,400 support could trigger further technical and algorithmic selling pressure across the precious metals complex. A resilient labor market raises the opportunity cost of holding non-yielding gold, as traders scale back bets on aggressive Fed easing.

The August employment report marks the strongest monthly gain since March, according to Labor Department data. The beat against consensus expectations shows the durability of the US expansion even as employers faced headwinds from elevated borrowing costs and cooling consumer demand.

For gold, the macro backdrop has shifted. Bullion had been supported by expectations that the Fed would cut rates aggressively to cushion a slowing economy. Those bets are now being unwound as the labor market shows few signs of cracking.

The next test for gold prices will come at the Federal Reserve's policy meeting, where officials will weigh the latest employment data against inflation readings. If the Fed indicates a slower pace of easing, gold could face further downside pressure. The broader precious metals complex, including silver and platinum, may also come under pressure as the rate-cut repricing extends across the sector.

This article is for informational purposes only and does not constitute investment advice.