Gold Stumbles as Labor Data Fuels Rate-Hike Fears

The yellow metal’s retreat accelerated following the release of May’s nonfarm payrolls, which showed an increase of 172,000 jobs. This figure effectively sidelined market hopes for imminent rate cuts, pushing Treasury yields higher and stripping gold of its safe-haven appeal. The metal’s decisive break below its 200-day moving average, a level it had maintained since November 2023, has prompted analysts to look toward the March low of $4,128 as the next major technical test.

While speculative capital continues to flow out of gold-backed ETFs, analysts note a persistent disconnect between institutional sell-offs and central bank accumulation. Some experts view the current price action as a clash between short-term investor liquidation and long-term strategic state demand. Despite the prevailing pessimism, some market observers caution against overreacting to the thin-volume selloff, suggesting that the fundamental case for gold as a hedge remains intact should economic data soften in the coming months.