Gold Falls Below $3,350 After Strong U.S. Jobs Report

Gold price dips below $3,350 on Friday after U.S. labor data showed stronger-than-expected job growth in May. The Nonfarm Payrolls report recorded 139,000 new jobs, above forecasts of 130,000. While the unemployment rate remained steady at 4.2%, the unexpected payroll increase gave the U.S. dollar a short-term boost, reducing immediate pressure on the Federal Reserve to cut interest rates — a development that typically softens demand for gold. Still, earlier labor reports this week signaled some underlying weakness, leaving the overall policy outlook uncertain.

A Thursday call between Chinese and U.S. officials eased some short-term fears of a widening trade war, but investors remain guarded as tariff disputes and other trade tensions continue to create uncertainty.

The United States doubled tariffs on steel and aluminum imports to 50% on Wednesday, prompting criticism and threats of retaliation from major trading partners including India, Canada, the European Union, and Mexico. Those responses have heightened the risk of escalating trade conflicts.

As negotiations continue into next week, the possibility of prolonged disputes remains. If talks stall or tensions escalate further, the resulting strain on global growth could push equity markets lower. In that scenario, gold’s recent slide could reverse as investors seek the safety of precious metals, increasing demand for gold as a traditional safe-haven asset.