Gold cratered to $4,350 per ounce after a blowout U.S. jobs report shattered expectations and forced traders to rethink how much rate relief the Federal Reserve will deliver this year.
The Bureau of Labor Statistics reported 172,000 nonfarm payroll additions in May, more than double the economist consensus of approximately 85,000. April’s count was revised to 179,000 from an initial read of 64,000, adding 115,000 jobs to the two-month tally that nobody had priced in. The unemployment rate held at 4.3%, as expected.
Gold had spent most of the week struggling to hold above $4,500. The jobs print ended that fight quickly. Spot gold touched $4,441.03 on the session, down 0.77%, before sliding further to $4,350.
Spot silver was last at $69.02 per ounce.
Wages offered no relief for gold bulls either. Average hourly earnings climbed 12 cents, or 0.3%, in May and are up 3.4% over the past 12 months. Both figures came in line with forecasts, but 3.4% annual wage growth keeps inflation firmly on the Fed’s radar.
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