According to ChainCatcher, international gold prices continued to decline during the European trading session on the 10th after falling earlier in the Asian session. Intraday, the price briefly dropped below the $4,200 per ounce threshold, erasing all gains recorded since the start of the year.
COMEX August Gold Futures Trade at $4,188.70
As of 17:15 Beijing time on the 10th, gold futures for August delivery on the New York Mercantile Exchange were quoted at $4,188.70 per ounce, representing a decline of 2.28%. Based on the current price, international gold prices have fallen by 3.51% so far this year.
The move followed weakness during Asian trading and extended further during European hours. After the $4,200 per ounce level was breached intraday, gold’s year-to-date performance shifted from a gain to a cumulative loss.
U.S. Jobs Data and Rate-Hike Bets Weigh on Gold
Analysis cited in the report said that U.S. nonfarm payroll data released last Friday came in far above market expectations, indicating that the fundamentals of the U.S. labor market remain resilient. Against the backdrop of inflation upside risks caused by the Middle East conflict, the market has recently been placing more bets on the Federal Reserve’s monetary policy path turning toward rate hikes in the second half of the year.
According to CME’s “FedWatch Tool,” the market currently sees the probability of the Federal Reserve raising interest rates by at least 25 basis points by the end of this year as close to 70%. If the Federal Reserve begins raising rates, the appeal of non-yielding assets such as gold would be weakened.