Business · Markets · 3 hrs ago
Gold falls as strong US jobs data lifts rate-hike expectations
Gold prices fell after US employment data came in stronger than expected.
The drop followed a jobs report that added to expectations that the Federal Reserve may raise interest rates to help control inflation.
Traders have largely priced in a rate hike in December.
Higher rates can weigh on gold because the metal does not pay interest, making it less attractive compared with interest-bearing investments.
Gold fell as much as 1.5% to near $4,020 an ounce, while spot gold was down 0.8% at $4,055.42 in New York trading.
Uncertain energy prices and inflation are adding to market volatility.
Analysts at Goldman Sachs lowered their year-end gold forecast from $4,650 to $4,150 an ounce, though they said the price drop could appeal to longer-term investors.
The next focus is whether the Fed raises rates in December.
Gold fell after stronger-than-expected US employment data increased expectations of a Federal Reserve rate hike.
Bullion dropped as much as 1.5% toward $4,020 an ounce after the report.
Spot gold was down 0.8% at $4,055.42 an ounce in New York trading.
Traders had largely priced in a Fed rate hike in December, while high energy prices added to inflation concerns.
Goldman Sachs cut its year-end gold forecast to $4,150 an ounce from $4,650.
- Who
- Gold traders and investors, with the Federal Reserve’s rate outlook shaping market expectations.
- What
- Gold prices fell after stronger-than-expected US employment data lifted expectations of a rate hike.
- When
- November 6, 2026; the decline followed the US employment report.
- Where
- The United States; spot gold prices were reported in New York trading.
- Why
- Strong jobs data and persistent inflation concerns increased expectations of tighter monetary policy, which weighs on gold because it pays no interest.
This story does not have two clearly opposing sides.
Gold jumped nearly 4% as Treasury yields and oil fell on bets linked to the midterm results.
Gold fell after the stronger-than-expected US employment report, with bullion slipping as much as 1.5% toward $4,020 an ounce.
- Maximum intraday decline
- 1.5%
- Low after report
- Near $4,020 an ounce
- Spot gold price
- $4,055.42 an ounce, down 0.8%
- Spot silver price
- $51.76 an ounce, down 0.03%
- Goldman Sachs year-end forecast
- Cut from $4,650 to $4,150 an ounce
- Expected Fed rate hike
- Traders had largely priced in a December hike
What people are saying
make it difficult to maintain long positions
the current correction in gold prices may offer a more attractive entry point