Spot gold fell 3.3% to $4,325.96 per ounce and gold futures dropped 3.4% to $4,352.57 per ounce, putting the market on track for a weekly decline.
The U.S. dollar strengthened, and Treasury yields rose (10‑year yield up 1.27%), prompting bond sell‑offs and pressure on equities.
Listed Companies and Sectors
No specific corporate earnings or sectoral news; the movement is driven by macro data affecting commodities and financial markets.
Investment Flows
Higher rate‑hike expectations made government debt less attractive, leading to outflows from bonds; no direct FDI/FPI data mentioned.
Interest Rates, Inflation, and Liquidity
The May non‑farm payroll report added 172,000 jobs, far exceeding the 85,000 forecast, with unemployment unchanged at 4.3%.
Revised payroll growth for March and April added a combined 93,000 jobs.
CME FedWatch tool now prices in a full quarter‑point Fed rate hike by year‑end, with markets discounting a hike as early as Q4 2026 and baseline timing in Q1 2027.
Elevated oil prices and ongoing price pressures keep inflation concerns high, reducing the likelihood of near‑term rate cuts.
Fiscal or Monetary Policy
The Federal Reserve, now chaired by Kevin Warsh after Jerome Powell, is expected to maintain a tightening bias; President Donald Trump expressed a preference for lower rates but said he would let Warsh decide.
Analysts from GDS Wealth Management and Macquarie reiterated a shift toward a hiking bias in upcoming FOMC meetings.
