Posted 2nd June 2023

Gold Price News: Unexpectedly Strong Jobs Report Sees Gold Tumble

market analysis gold

A unexpectedly strong US jobs report triggered  a collapse in the gold price as suddenly a June hike by the Federal Reserve seems more likely.

A US economy that is clearly holding up well even with the recent banking crisis and stubbornly high inflation has changed perceptions on whether the Fed will hold off on further hikes when it meets later this month. 

Gold typically struggles at times of rising interest rates so this change in outlook has hit the price, particularly when it is coupled with increased risk appetite in markets now the US looks like it will avoid defaulting on its debt.

Suddenly gold’s safe haven appeal and lack of yield have come into sharp focus and seen the price drop. 

It is worth noting that Kinesis’ gold KAU offers investors the security of a physical backed asset along with a monthly yield based on transactions using the currency in the previous month.

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