Gold Drops After Strong US Employment Data Raises Rate Hike Fears

Spot gold fell 0.8% to $4,055.42 an ounce after a stronger-than-expected US nonfarm payrolls print stoked expectations of a Federal Reserve interest rate hike.

Goldman Sachs analysts cut their year-end gold forecast from $4,650 to $4,150 an ounce, citing rising interest rates and volatile energy prices as headwinds.

The precious metal previously jumped nearly 4% on Wednesday following US midterm results that led Treasury yields and oil prices to fall.