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Home Spot Gold Gold Faces Pressure After Strong US Labor Market Data, Rate Cut Expectations Diminish

Gold Faces Pressure After Strong US Labor Market Data, Rate Cut Expectations Diminish

by anna

Gold prices experienced downward pressure on Friday due to unexpectedly robust US labor market data, which not only diminished expectations for a March interest rate cut by the US Federal Reserve but also cast doubt on a rate cut in May. The outlook for interest rate cuts later in the year is now under scrutiny.

Prior to the release of the labor market data, the market anticipated a Fed funds rate of approximately 4% at the year-end based on Fed fund futures. Following the data, the expected Fed rate for the end of 2024 increased by around 30 basis points, indicating a reduction in the likelihood of at least one interest rate cut.

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This shift led to an appreciation of the US Dollar and a significant rise in US bond yields, creating short-term challenges for the Gold price.

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