Gold Tumbles as Strong NFP Data Reduces Fed Rate Cut Expectations
Gold prices plummeted 1.8% to $2,315 per ounce following stronger-than-expected US Non-Farm Payrolls data, which diminished hopes for aggressive Federal Reserve rate cuts. The robust employment report showed job gains exceeding forecasts, reinforcing the Fed's hawkish stance and supporting higher-for-longer interest rates. EUR/USD declined 0.4% to 1.0780 as dollar strength accelerated across the board. The US Dollar Index surged 0.6% to 104.50, reaching a two-week high. Gold's sharp decline broke below key support at $2,330, opening the path toward $2,300 psychological support. The correlation between gold and currency markets intensified as traders repriced rate expectations. Near-term gold weakness likely pressures commodity currencies while supporting USD pairs. Traders should monitor the $2,300 level closely, as a break below could trigger further selling toward $2,280.
Related Symbols:
EURUSD
XAUUSD
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