Gold Trims Rally, US Jobs Data Turns Market Hawkish Again
Gold prices pared gains on Tuesday (June 2nd) after solid US labor market data reinforced expectations that the Federal Reserve will keep interest rates higher for longer. Bullion briefly rose by around 1.3% before turning slightly lower when data showed US job openings jumped in April to a nearly two-year high, while layoffs declined—illustrating a still-resilient labor market.
Meanwhile, market participants continued to weigh the latest signals from the US and Iran regarding the possibility of a ceasefire agreement to end the Middle East conflict. The prospect of restoring energy and trade flows through the Strait of Hormuz is a key factor: if flows return to normal, consumer inflation concerns could ease and open up room for central banks to ease policy. Lower interest rates typically support gold because it offers no yield.
However, gold remains in a difficult context since the outbreak of war in late February. Prices are said to remain around 15% below pre-conflict levels and have tended to move within a narrow range in recent weeks, as markets continue to shift between geopolitical headlines and adjusting monetary policy expectations.
In New York trading at 1:30 p.m., spot gold rose 0.2% to US$4,490 per ounce. Silver rose 0.7% to US$75.37, while platinum and palladium also strengthened. The Bloomberg Dollar Index remained relatively stable, indicating that today's main pressure came more from changes in interest rate expectations than from major dollar movements. (Arl)*
Source: Newsmaker.id
