TechFlow News reported that on June 10, following a decline during the Asian trading session, international gold prices continued to fall during the European trading session, briefly dipping below the $4,200-per-ounce level and erasing all gains accumulated so far this year. As of 5:15 p.m. Beijing time on June 10, August-delivery gold futures on the New York Mercantile Exchange (NYMEX) traded at $4,188.70 per ounce, down 2.28%. At current prices, international gold prices have declined 3.51% year-to-date.
Analysts noted that last Friday’s U.S. nonfarm payroll data significantly exceeded market expectations, indicating continued resilience in the U.S. labor market. Amid rising inflationary risks triggered by the Middle East conflict, markets have recently increasingly priced in a Federal Reserve interest-rate hike in the second half of the year. According to CME Group’s “FedWatch Tool,” markets currently assign nearly a 70% probability to at least a 25-basis-point rate hike by the Fed by year-end. Should the Fed initiate a rate hike, it would diminish the appeal of interest-free assets such as gold. (Jinshi)
