Gold eases as robust US payrolls boost rate-hike bets

Data on Friday showed U.S. job growth accelerated ⁠sharply in August while the unemployment rate held steady at 4.1%, suggesting an improvement ​in the labour market after recent struggles and keeping a rate increase this month ​on the table. U.S. producer price index (PPI) data is due on Thursday, followed by consumer price index (CPI) data on Friday.

"The jobs number delivered a clear upside surprise and put some pressure on the ​metal, but it wasn't a complete slam dunk for a September rate hike. ​The real missing piece of the puzzle arrives this week with U.S. CPI," said Tim Waterer, ‌chief market ⁠analyst at KCM Trade.

"A strong inflation print would reinforce expectations of a Fed hike, lift yields further and weigh more heavily on gold. "Traders are pricing in a 58.4% chance of a rate hike at the Fed's September 15-16 meeting, CME's Fed.

Watch tool ​showed. While gold is typically ​viewed as an ⁠inflation hedge, higher interest rates tend to weigh on the appeal of non-yielding bullion. U.S. President Donald Trump said on Friday that unless ​the Fed cuts interest rates, he would stop trading with ​countries with ⁠which the United States had a deficit.

On the Middle East front, Iran said it will step up efforts to tackle problems created by U.S. sanctions that are crippling its economy, ⁠while a ​senior Iranian official warned of a "painful response" if ​it comes under further attack.

Among other metals, spot silver eased 0.2% at $66.03 per ounce, platinum lost 0.8% at $1,805.53 and ​palladium declined 0.7% to $1,396.08.