Gold Falls Toward $4,450 as Strong US Jobs Data Bolster Higher-for-Longer Rate Bets
By Martin Lam
Last Updated: June 4, 2026
Market Overview
Gold prices experienced a decline, falling toward $4,450 per ounce on Wednesday. This drop was attributed to a stronger-than-expected US jobs report, which reinforced market expectations that the Federal Reserve will maintain elevated interest rates for an extended period. As a result, the appeal of gold, a non-yielding asset, diminished.
Spot gold prices decreased by 0.79%, settling around $4,451.60 per ounce, retreating from recent highs above $4,500. Traders adjusted their positions, scaling back bets on an imminent rate cut by the Federal Reserve following the robust employment data.
Impact of US Jobs Data
The latest employment figures revealed that the US economy added significantly more jobs than analysts had anticipated. The nonfarm payrolls report indicated an increase of 115,000 jobs in April, surpassing the consensus estimate of 62,000. Additionally, the unemployment rate remained steady at a historically low level of approximately 4.3%, with job openings rising to 7.618 million, the highest since June 2024.
This strong labor market data not only reduced the pressure on policymakers to ease monetary policy but also contributed to a strengthening of the US dollar, which typically inversely correlates with gold prices.
Context and Future Outlook
Gold had previously reached an all-time high of $5,589.38 per ounce on January 28, 2026, driven by geopolitical tensions, central bank purchases, and demand for inflation hedging. Although prices have retreated from these peaks, they remain significantly above levels seen before 2025.
The Federal Reserve currently maintains its benchmark interest rate between 3.5% and 3.75%. Projections from Goldman Sachs Research suggest that there may be two rate cuts in 2026, potentially occurring in March and June, which could lower the funds rate to a terminal level of 3% to 3.25%. However, the resilience of labor data may lead markets to reassess the likelihood of a rate cut in June, with current estimates suggesting only a 60% probability of easing at that meeting.