Strong US August nonfarm payrolls of 162,000 jobs, well above expectations, combined with hotter-than-forecast producer prices, lifted market-implied odds of a September Federal Reserve rate hike above 70 percent by mid-week. This supported the dollar and Treasury yields near multi-year highs, weighing on non-yielding gold and contributing to a pullback from early-week levels above $4,400 toward the $4,300 area. Geopolitical tensions and elevated oil prices provided some safe-haven offset, while the August CPI release—headline inflation steady at 3.4 percent with softer core readings—eased real-rate pressures and supported a modest rebound by Friday. The September 15–16 FOMC meeting remains the next key catalyst for XAU/USD price action.