Gold Tumbles Below $4,400 on NFP Shock: Fed Easing Bets Crater, Sell on Rallies to $4,300

Gold is valued below $4400 since positive employment data has diminished the likelihood of an interest rate cut by the Fed. After registering an intraday low of about $4397, gold is now trading close to $4405.

The U.S. labor market released May Nonfarm Payrolls, leaving the markets unsettled. May’s figure came in at 172,000, which is 2 times the 85,000 figure estimated by economists. Numbers for the previous month, April, were revised up from 115,000 to 179,000. The unemployment rate remained at 4.3%, and YoY wage growth decelerated to 3.4%. Those hired in the month included employees in health care (3.6% growth in payrolls), transportation and warehousing (3.7% growth), and retail (3.2% growth). The largest declines were in the information sector (-2.2%) and federal government (-1.1%). With this release, the expectation for Fed rate cuts in the horizon was destroyed. The dollar and U.S. treasuries declined as the markets adjusted to “higher-for-longer” monetary policy to late 2026, while gold and cryptos increased in price.

 Major support-$4400/$4350/$4000. Major bearishness below $4000. Any violation below targets $3605/$3000/$2800. 

 It is good to sell on rallies around $4418-20 with SL around $4475 for a TP of $4300/$4200.