Gold prices fell more than 2% on Friday as strong U.S. jobs data increased expectations of a Federal Reserve interest rate hike.

U.S. gold futures for December delivery also dropped 2.4% to $4,428.80 per ounce. These price movements were driven by stronger-than-expected U.S. jobs data from August. The report showed accelerated job growth and a steady unemployment rate of 4.1%. This data suggests a stable labor market and has increased the likelihood of a Federal Reserve interest rate hike as early as this month. Market analysts noted that the jobs report makes a September rate hike more likely unless consumer price index data is weak. Short-term interest-rate futures prices now imply a 65% chance of a rate increase at the September 15 to 16 meeting, up from 55% before the report. The focus now shifts to next week's consumer and producer price inflation data to determine the Federal Reserve's policy path. Other metals, including silver, platinum, and palladium, also saw price declines on Friday.