Gold Drops 3% Below 200-Day Support as 172,000 U.S. Jobs Stoke Rate-Hike Fears
Updated
Updated · Kitco NEWS · Jun 5
Gold Drops 3% Below 200-Day Support as 172,000 U.S. Jobs Stoke Rate-Hike Fears
3 articles · Updated · Kitco NEWS · Jun 5
Summary
$4,327.40 spot gold broke its 200-day moving average and slid to its lowest level since March, while silver fell 7% to $68.28 and dropped below $70.
172,000 U.S. payroll gains beat expectations and pushed markets to price in a Fed rate hike this year, with higher oil and food costs reinforcing inflation worries.
Analysts now see near-term downside toward $4,099 or even $4,000 for gold, with next week's U.S. CPI and PPI likely to test whether energy-driven inflation is spreading.
Longer term, strategists still argue the selloff is orderly rather than the start of a bear market, citing expected central-bank buying and demand tied to sovereign-debt risks.
Global rate decisions could shape the next move: the Bank of Canada is expected to hold, while the ECB could raise rates by 25 basis points, keeping pressure on non-yielding bullion.