Gold Falls, Investors Focus on Jobs Data and Middle East Tensions
Gold prices fell below $4,450 an ounce on Friday, heading for a weekly decline of more than 2%, amid a stronger-than-expected US jobs report and continued uncertainty in the Middle East. The May jobs report showed the US economy added 172,000 jobs, well above the 85,000 forecast, while the unemployment rate remained at 4.3% and annual wage growth moderated at 3.4%, in line with market expectations.
This data prompted investors to strengthen bets on a Federal Reserve interest rate hike, with the market now pricing in a quarter-point hike by the end of the year. Meanwhile, the market remains focused on developments in the Middle East, where US President Donald Trump stated that peace negotiations are nearing their final stages.
However, Iran's foreign minister asserted there has been no significant progress, while the Iran-backed Hezbollah group rejected a US-brokered ceasefire proposal. This uncertainty continues to pressure gold as a safe-haven asset, although energy prices and geopolitics remain factors supporting demand for the precious metal. (gn)*
Source: Newsmaker.id