XAUUSD falls to a two-month low as U.S. jobs data fuels expectations of tighter Fed policy amid Middle East conflict.
Gold prices extended losses on Monday, breaching the 200-day moving average to reach their lowest level in over two months. The decline followed stronger-than-expected U.S. employment data, which bolstered bets on a Federal Reserve interest rate hike to curb inflation.
Prior to the drop, gold had traded near $2,000 per ounce, but the latest jobs report shifted market sentiment. Geopolitical risks, including renewed Israel-Iran strikes and attacks in Lebanon, supported oil prices but failed to lift safe-haven demand for gold.
The move underscores growing concerns over persistent inflation and the Fed’s policy trajectory, with traders pricing in a higher-for-longer rate environment.