World Gold Prices Plummet On Mighty US Jobs Report

Gold Illustration (Photo: Doc. Antara)

JAKARTA - Gold prices fell sharply in late trading Friday, May 5 local time, snapping three straight days of gains but still holding above the psychological level of 2.000 dollars, due to a higher-than-expected US jobs report for April.

The most-active gold contract for delivery in June on the Comex division of the New York Exchange, tumbled $30.90, or 1.50 percent, to close at $2.024.80 an ounce, after touching a session high of $2.061.30 and a low of $2.061.30. 2007.00 US dollars.

Gold futures jumped USD 18.70, or 0.92 percent, to USD 2.055.70 on Thursday (4/5/2023), after lifting USD 13.70, or 0.68 percent, to USD 2.037.00 on Wednesday (3/5/2023), and jumped USD 31.10 or 1.56 percent to USD 2.023.30 on Tuesday (2/5/2023).

Comex gold for June hit an all-time high of $2.082.80 an ounce, and gold futures ended 1.3 percent higher for the week.

The US Department of Labor reported Friday (5/5/2023) that US employers added 253.000 jobs in April, the best gain since January. The jobless rate fell to 3.4 percent in April, equivalent to the lowest reading since 1969.

The still tight labor market is fueling fresh doubts over the Federal Reserve's pause in interest rate hikes. Nevertheless, the CMEGroup's Fedwatch tool shows that rate expectations remain the same, even though the tool suggests there's a 3.3 percent chance of a rate hike at the next Federal Reserve meeting.

"After finally hitting record highs, gold is under pressure after a torrid jobs report pushed back Fed rate cut bets," said Ed Moya, analyst at online trading platform OANDA, referring to April non-farm payrolls data.

"If banking concerns continue to subside and the economy remains resilient, some policymakers may want to continue tightening."

Regardless, gold "still has a good chance of making a comeback", said Moya, suggesting that banking worries are not going away any time soon due to how troubled regional banks appear to be - and the yellow metal's position as a safe haven from such worries.

Another precious metal, silver for delivery in July, was down 29.70 cents, or 1.13 percent, to close at 25.93 dollars per ounce. Platinum for July delivery hoisted 18 dollars, or 1.71 percent, to settle at 1.068.30 dollars per ounce.