The latest United States non-farm payroll report exceeded expectations, weakening the anticipation of a rate cut by the Federal Reserve later this year. As a result, gold prices fell over 1% on Friday (June 6th), while silver prices soared to their highest level since 2012.
By 2:28 pm Eastern Time on Friday, New York gold futures dropped by 0.8%, trading at $3,346.60 per ounce; spot gold fell by 1.1%, at $3,316.13 per ounce. However, gold has still risen by 0.8% so far this week.
The U.S. Bureau of Labor Statistics released a report on Friday indicating an increase of 139,000 in non-farm employment for the month of May, surpassing the market’s estimate of 130,000. The unemployment rate remained unchanged at 4.2%, in line with market expectations. Employment rates in healthcare, leisure and hospitality industries, as well as social assistance sectors, continued to rise, while job opportunities in the federal government sector continued to decline.
Edward Meir, an analyst at Marex, commented that the non-farm payroll data suggests the Federal Reserve may maintain the status quo for some time, which could be unfavorable for gold.
Federal Reserve policymakers have expressed that inflation remains a more concerning issue than cooling in the labor market, indicating that monetary policy adjustments will persist for a period of time.
Gold is typically seen as a safe-haven asset, performing well in times of economic uncertainty and low-interest rate environments.
Furthermore, President Trump had a phone call with Chinese leader Xi Jinping on Thursday, primarily discussing the escalating trade tensions and critical mineral disputes between the United States and China, although the core issues have yet to be fundamentally resolved.
Meir added, “These negotiations are very challenging and cannot be resolved solely through phone calls. If tariff news turns negative, gold prices may see an increase.”
(This article referenced relevant reports from Reuters)