Gold Breaks Below 200-Day Moving Average After 172k May Jobs Surprise

XAU0.25%

According to Kitco News, gold prices broke through critical support on Friday after the Bureau of Labor Statistics reported that 172,000 jobs were created in May, significantly exceeding expectations. Markets are now pricing in a nearly 50% probability of a rate hike as early as October.

WisdomTree's Head of Commodities Nitesh Shah noted that accelerating inflation could push real interest rates deeper into negative territory, potentially supporting gold as a defensive asset against eroding purchasing power.

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