(Bloomberg) — Gold fell the most in more than two years as surprise strength in a key US jobs report dashed hopes that the Federal Reserve will be able to start lowering borrowing costs soon.
Treasury yields and the dollar surged after the US government’s May employment report showed job growth exceeded expectations and wages were hot. Bullion slumped as much as 3.1%, the most since March 2022, while base metals also tumbled.
“A strong jobs report reversed a great deal of the rate cut excitement that had built during the past week,” said Ole Hansen, head of commodity strategy at Saxo Bank AS. “This report removes hopes for earlier rate cuts, with sticky wage growth and robust employment in need of high rates to cool.”
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