Gold Plunges As Investors Parse Robust US Nonfarm Payrolls Data

Gold prices fell sharply on Friday after strong non-farm payrolls data reinforced expectations for a possible U.S. Federal Reserve rate hike. The stronger labor market reading lifted yields/rate-hike odds and pressured non-yielding bullion. The move has clear implications for commodities and rate-sensitive assets, though it is narrower than a broad market shock.

Analysis

Gold prices fell sharply on Friday after strong non-farm payrolls data reinforced expectations for a possible U.S. Federal Reserve rate hike. The stronger labor market reading lifted yields/rate-hike odds and pressured non-yielding bullion. The move has clear implications for commodities and rate-sensitive assets, though it is narrower than a broad market shock.