Gold prices tumble as August jobs report beats expectations

Spot gold prices dropped nearly 2% following the U.S. Labor Department report, trading at $4,385.80 an ounce shortly after the data release. The metal breached the $4,400 support threshold as market sentiment shifted abruptly from last week's pessimism. While the unemployment rate remained stable at 4.1%, the unexpected strength in payroll growth provides the Federal Reserve with newfound flexibility to pursue interest rate hikes later this month. This shift in the macroeconomic landscape has effectively cooled the safe-haven demand that previously bolstered gold prices, forcing traders to exit positions as the outlook for U.S. monetary policy tightens.