Strong U.S. employment data boosted Fed rate-hike expectations and pressured gold, which erased its year-to-date gains. In the U.S. session, spot gold fell about 3.5% and broke below $4320/oz. U.S. Treasury yields and the dollar both rose. A tight labor market leaves Fed officials room to tighten further, while Middle East tensions lifted energy prices. Rising rates typically weigh on non-yielding precious metals.

2026-06-06

Strong U.S. employment data boosted Fed rate-hike expectations and pressured gold, which erased its year-to-date gains. In the U.S. session, spot gold fell about 3.5% and broke below $4320/oz. U.S. Treasury yields and the dollar both rose. A tight labor market leaves Fed officials room to tighten further, while Middle East tensions lifted energy prices. Rising rates typically weigh on non-yielding precious metals.