Gold recorded its biggest decline in seven weeks. The US employment data released earlier was stronger than expected, triggering predictions that the Federal Reserve may soon begin to reduce monetary stimulus.

Employment growth in the US in July recorded the biggest increase in nearly a year, and the unemployment rate fell faster than expected. After the report was released, the US dollar rose, and 10-year treasury bond yields rose.

Gold fell because investors feared that the improvement in the US economy and rising inflation would prompt the central bank to withdraw its unprecedented economic support. Low interest rates help make gold more competitive with interest-bearing assets. The price of gold is likely to record its biggest weekly decline since mid-June.

The employment data “pushed the price of gold sharply lower because traders thought the Federal Reserve would not maintain its current monetary stance,” said Naeem Aslam, chief market analyst at Ava Trade.

Spot gold once fell 1.9%. 09:09 New York time was reported at $1,770.99 per ounce. The price of gold has dropped 2.3% this week. The Bloomberg dollar spot exchange rate index rose 0.3%. Silver and platinum declined, and palladium was almost flat.