Gold down 2% on the hot jobs report. Buy the dip?

Friday's jobs numbers broke the rate cut narrative. Gold dropped over 2.2% down to $4,376 because the labor market is still running too hot. Unemployment held flat at 4.1% and payrolls beat expectations. The futures market is pricing in a 65% chance the Fed actually hikes rates this month. That is brutal for gold. Since it pays zero yield, the second yields spiked and the dollar went up, big institutional funds dumped bullion to chase yields in short-term debt. Nem and gold got squeezed bad on margins since falling spot cuts revenue but diesel was $5.85 over the weekend keeping overhead stuck at highs. If CPI is hot next week, the Fed has an open runway to keep rates high. This pretty much kills the stagflation trade that carried gold past $4,400 this summer. If they stay hawkish, cash wants yield over safety. Are you buying more gld/physical under $4,380 or … ?

Source: CNBC