Gold Faces Selling Pressure After Stronger-Than-Expected US Jobs Report

Gold prices faced strong selling pressure after the US economy added 172,000 jobs in May, exceeding forecasts of 85,000. April's figures were revised upward to 179,000 from an initial 64,000, while unemployment stayed at 4.3%. This robust data has boosted expectations for potential Federal Reserve rate hikes.

Spot gold fell to $4,441.03 per ounce, a 0.77% decline, as it failed to sustain levels above $4,500. Experts note that the strong labor market supports a firmer dollar and higher yields, potentially pressuring gold unless geopolitical tensions sustain safe-haven buying.

Naeem Aslam from Zaye Capital Markets described it as a hawkish report that counters aggressive rate-cut hopes. Meanwhile, Chris Zaccarelli of Northlight Asset Management highlighted that with controlled inflation amid disruptions in the Strait of Hormuz, the Fed might avoid both cuts and hikes.