Gold bars are displayed at the U.S. Bureau of Engraving and Printing in Washington, D.C. Photo: AFP/VNA.

Gold prices fell sharply after the latest report showed growth in the US labor market. According to the US Department of Labor, 272,000 jobs were created in May, higher than the 185,000 jobs analysts had predicted. Analysts noted that this solid labor market growth could force the Federal Reserve to postpone interest rate cuts this year.

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World gold prices have reversed course and risen sharply.
World gold prices have reversed course and risen sharply.
Global gold prices are rapidly reaching new highs, with the 100 million VND per tael mark not far off.
Global gold prices are rapidly reaching new highs, with the 100 million VND per tael mark not far off.
World gold prices reach new high.
World gold prices reach new high.

The latest employment data increased selling pressure on gold during the day. Earlier, the precious metal had been gradually "sliding" after data from the People's Bank of China (PBoC) showed that the bank had not purchased any gold last month, ending a record 18-month streak of additions.

Some experts believe that the "plunge" in gold prices is due to the market's focus on the solid growth in the labor market. According to Axel Merk, President and Chief Investment Officer of Merk Investments, the number of people working two jobs remained at an all-time high in December 2023.

In addition, some analysts noted that full-time employment fell sharply last month while part-time employment increased. Pepperstone's senior research strategist, Michael Brown, said that while the latest jobs report is prompting the market to adjust interest rate expectations again, it's unlikely to change the Fed's outlook. He pointed out that inflation data continues to dominate central bank sentiment.

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According to many experts, the Fed is likely to cut the benchmark interest rate in September and again later this year. Lower interest rates reduce the opportunity cost of holding gold, which is a non-yielding asset.

According to baotintuc.vn