Gold just had a very bad day. Spot prices cratered over 3% on June 5, landing around $4,336 per ounce and marking one of the steepest intraday drops the metal has seen in recent sessions.
What happened
The daily low hit $4,341.52, representing a decline of 2.96% before settling near $4,336. That single session extended a rough stretch for gold, pushing cumulative weekly losses to approximately 4.3%.
The catalyst was straightforward: stronger-than-expected US jobs data. A labor market that refuses to cool down gives the Federal Reserve exactly the cover it needs to keep interest rates elevated. And elevated rates are kryptonite for gold.
Gold doesn’t pay interest or dividends. When Treasury yields are generous, holding gold means forgoing real returns. Investors start doing the math, and the math doesn’t flatter the yellow metal.
