By Susha U N and Rachel Koning Beals
Gold futures fell Monday, finishing at their lowest level in more than a week as upbeat U.S. employment data boosted expectations for a U.S. interest-rate hike and lifted the dollar’s appeal at the expense of gold demand.
December gold GCZ6, -0.20% lost $3.10, or 0.2%, to settle at $1,341.30 an ounce. Prices haven’t settled at a level this low since July 28.
Gold finished at $1,344.40 an ounce Friday, down 1.7% — marking the worst one-day percentage decline for an actively traded contract since May 24, according to FactSet data.
The moves were attributed largely to the better-than-expected July jobs report. As reported Friday, the U.S. created 255,0000 new jobs in July, outpacing expectations of 185,000, and marking the second-straight healthy jobs reading.
“Gold traders reduced their positions and took some profit off the table as the odds of the U.S. increasing [interest rates] have become stronger,” said Naeem Aslam, chief market analyst with ThinkMarkets. “However, it is still very vague when that will take place as the upcoming U.S. elections do have massive elements of uncertainty.”