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----- Market News Update 🗞
Gold fell sharply on Friday, breaking below the key $3,350 level, after the US non-farm payrolls report showed the labor market remains resilient. The US added 139,000 jobs in May, above the 130,000 expected, while the unemployment rate held steady at 4.2%. This stronger-than-expected data tempered expectations of a Fed interest rate cut in July, reducing the probability to 16.5% from 33.9% prior to the release and pushing the dollar higher.
Despite the weaker jobs data earlier in the week, Friday's upbeat NFP report reduced pressure on the Fed to cut rates in the near term. Meanwhile, the easing of US-China tensions offered the dollar further support after Presidents Trump and Xi agreed to resume high-level economic talks.
Even so, gold remains sensitive to ongoing trade uncertainties and threats of retaliation for Trump's recently imposed 50% tariffs on steel and aluminum. With the eurozone surprising to the upside in GDP and retail sales, and the ECB offering a well-telegraphed 25 basis point rate cut, global risk sentiment may remain volatile ahead of the June 18 Fed meeting.