Gold Under Pressure as U.S. Jobs Report Beats Expectations
Gold | 2026-06-10 05:51:31
The decline was accompanied by accelerated outflows from global gold exchange-traded funds and a more bearish outlook among options traders.
By Paul Ploumis
SEATTLE (Scrap Monster): Gold prices recorded a sharp decline last week as stronger-than-expected U.S. employment data triggered expectations of tighter monetary policy and higher interest rates.
The LBMA Gold Price PM fell 4% during the week to US$4,365 per ounce, erasing its year-to-date gains. Gold had traded near the US$4,500 per ounce level for most of the week. However, the prices came under pressure on Friday following the release of robust U.S. payroll figures.
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The decline was accompanied by accelerated outflows from global gold exchange-traded funds and a more bearish outlook among options traders.
From a technical perspective, gold has broken below its rising 200-day moving average, signaling the possibility of a deeper correction. Key downside support levels are seen near US$4,099 and US$4,075 per ounce. A failure to hold these levels could expose the metal to further declines toward US$3,887 and potentially US$3,500 per ounce.
The market now awaits upcoming U.S. inflation data, jobless claims, and consumer sentiment indicators. Investors are also closely monitoring geopolitical developments involving Iran, Israel, Russia, Ukraine, and the Strait of Hormuz, all of which could influence gold's near-term direction.
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What is likely to have the biggest impact on gold prices in the near term?
Frequently Asked Questions
- Why did gold prices decline last week?
Gold prices fell after stronger-than-expected U.S. payroll data increased expectations of tighter monetary policy and higher interest rates.
- How much did gold prices fall?
The LBMA Gold Price PM declined 4% during the week to US$4,365 per ounce.
- What signals suggest further downside risk for gold?
Gold has broken below its rising 200-day moving average, a key technical indicator that often signals additional price weakness.
