Gold prices edged lower on Monday (June 9) after stronger-than-expected U.S. employment data dampened hopes for imminent interest rate cuts by the Federal Reserve. Meanwhile, easing tensions in U.S.-China trade relations weighed on the metal’s appeal as a safe-haven asset.
Spot gold fell 0.2% to $3,303.19 per ounce as of 0056 GMT, while U.S. gold futures slipped 0.7% to $3,323.40.
The decline follows Friday’s U.S. Labor Department report, which showed the economy added 139,000 jobs in May — surpassing analyst projections. The unemployment rate held steady at 4.2%, and wage growth exceeded expectations, signaling resilience in the labor market.
Stronger job and wage data have led investors to scale back their expectations for Federal Reserve rate cuts this year. Markets are now pricing in just one potential cut in October, a revision from earlier forecasts that suggested multiple reductions.
Further pressuring gold, the U.S. dollar index edged higher, making the metal more expensive for buyers using other currencies.
On the trade front, senior officials from both the United States and China are set to meet in London on Monday. The talks are aimed at de-escalating the prolonged trade dispute between the world’s two largest economies, a conflict that has rattled global markets in recent months.
U.S. President Donald Trump also indicated that an announcement on the next Federal Reserve chair is forthcoming, stating that a “good Fed chair” would pursue lower interest rates.
Geopolitical developments are also being closely watched. Trump’s executive order barring entry to citizens from 12 countries takes effect Monday, further heightening political tension. In Europe, Russia announced on Sunday that its troops have advanced to the edge of Ukraine’s Dnipropetrovsk region amid ongoing peace negotiations and disputes over the return of soldiers’ remains.
Gold, widely regarded as a hedge against inflation and geopolitical instability, typically loses appeal in a rising interest rate environment, as it yields no interest or dividends.
Among other precious metals, spot silver held steady at $35.94 per ounce. Platinum slipped 0.5% to $1,163.10, and palladium also fell 0.5% to $1,041.75.
