Gold Suffers Biggest One Day Drop Since March


Gold plunged 3.3% on Friday, falling $148 to $4,353.90 after a surprisingly strong U.S. jobs report crushed expectations for a near term Fed rate cut.
What happened?
• May payrolls: 172,000 vs 88,000 expected
• Unemployment held at 4.3%
• Previous months were revised sharply higher
• U.S. Dollar Index reclaimed the 100 level
Stronger economic data reduces pressure on the Fed to cut rates. Higher for longer rates and a stronger dollar are typically bearish for gold.
The technical damage was significant:
• Gold fell below its 200-day moving average
• First close below that level since November 2023
• Gains made during 2026 were effectively erased
Markets were positioned for easier monetary policy. Friday's jobs report forced a rapid reset of those expectations, shifting momentum away from gold and back toward the dollar
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