XAU/USD falls as robust labor market data dims expectations for Federal Reserve interest rate reductions in the near term.
Gold prices extended losses as stronger-than-expected U.S. labor market data reinforced expectations that the Federal Reserve will maintain restrictive monetary policy. The rise in Treasury yields and a firmer USD added downward pressure on the precious metal.
Recent economic indicators, including payroll growth and wage increases, have surpassed forecasts, reducing bets on imminent Fed rate cuts. Comparable periods of labor market resilience have historically delayed policy easing, keeping yields elevated.
Market reaction saw XAU/USD decline further, while equities and the dollar gained ground amid shifting rate expectations.