Spot gold lost 3%, to $2,304.54 per ounce, and US gold futures lost 2.8%, to $2,325. The gold metal declined nearly 1% for the week, its third consecutive weekly decline.
Gold suffered the double Nelson and plummeted 3%: what to expect going forward
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He gold accelerated its slide on Friday as it took a double hit. On the one hand, the jobs report that was stronger than expected in the United States which reduced expectations of interest rate cuts this year, adding to bearish sentiment driven by data that indicated that the main consumer, Chinastopped its purchases in May.
He spot gold lost 3%, US$2,304.54 per ounceand Gold futures in the United States fell 2.8% to $2,325. The gold metal declined nearly 1% for the week, its third consecutive weekly decline.
Caught in the wake of gold, silver fell 6.6%, to $29.25 per ounce; platinum fell more than 3.6%, to $967.05; and palladium fell 2.2%, to $909.06.
What influenced the collapse of the ounce of gold
The US Department of Labor report showed that nonfarm payrolls increased by 272,000 jobs in May, compared to expectations of an increase of 185,000. The data boosted the dollar’s rise, making bullion more expensive for foreign buyers.
At the same time, Traders were now reducing their rate cut bets to 37 basis points by the end of December, down from 48 basis points before the jobs data.and the first reduction is more likely to occur in November rather than September.
According to Phillip Streible of Blue Line Futures, “The gold market is experiencing some sell-off, along with other metalsas the data shows that the US economy is quite strong and the Fed could delay the first cut. Higher rates increase the opportunity cost of holding bullion, which does not earn interest.”
The jobs report also added to the bearish sentiment seemingly driven by data showing that The main consumer, China, stopped gold purchases in May after 18 consecutive months of purchases.
Source: Ambito
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