Gold fell Friday on the release of May’s job numbers and is headed for a weekly loss as signs of a peace deal between the U.S. and Iran remained elusive and equities were poised for a historic weekly run of gains.
Job growth took a surprising jump up in May as U.S. jobs data continued its growth in 2026, per the Bureau of Labor Statistics. U.S. jobs numbers grew 172,000 for May, far above the forecasted for 80,000, while unemployment held at 4.3%, as expected. This solid economic indicator gives Fed hawks more ammunition for not cutting interest rates. The Federal Reserve closely watches inflation and jobs data when determining monetary policy. The conflict in Iran has driven up the price of oil and the cost of goods, raising speculation that the Fed may have to raise interest rates to combat persistent inflation. That has pressured gold prices.
August gold futures rose 0.9% Thursday to settle at $4,505.00 an ounce on Comex, though the most-active contract fell 1.9% in the first four days of the week. Bullion dropped 0.8% in May after losing 1% in April and sliding 11% in March. It rallied 64% last year. The August contract is currently down $80.8 (-1.79%) an ounce to $4424.40 and the DG spot price is $4387.90.
The Hezbollah militant group in Lebanon rejected a new ceasefire proposal, and Israel said it wouldn’t withdraw troops from the country, stymying President Donald Trump’s efforts to broker a truce there as part of a peace deal with Iran. Inflation has climbed to the highest levels in almost three years in recent months as the conflict in Iran has spurred oil prices and the dollar, making gold a less attractive alternate investment.
The private payrolls report from ADP on Wednesday showed companies added a stronger-than-expected 122,000 jobs in May, beating the consensus estimate of 110,000 and demonstrating some resilience in the labor market. Strong labor market data reinforces bets that the Fed will hold interest rates higher for longer. Weekly U.S. initial jobless claims for last week came in at 225,000 on Thursday, an increase of 13,000. Economists had forecast claims would come in at 214,000.
Over 98% of the investors tracked by the CME FedWatch Tool are betting on rates staying unchanged in June. The Fed has kept interest rates unchanged this year after three previous rate cuts. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
The Fed in April held interest rates steady at 3.5% to 3.75%, as expected, but policymakers were unusually divided. The June 16-17 meeting of Fed policymakers will be the first under new Chair Kevin Warsh.
Front-month silver futures gained 0.4% Thursday to settle at $73.97 an ounce on Comex. The July contract declined 2.5% in the first four days of the week. The most-active contract touched a record above $115 in January. Silver gained 2.5% in May after losing 1.2% in April and dropping 20% in March. It rose 141% last year. The July contract is currently down $2.871 (-3.88%) an ounce to $71.100 and the DG spot price is $70.43.
Spot palladium rose 0.2% Thursday to $1,330.00 an ounce and is down 2.5% so far this week. Palladium fell 12% last month after rising 3.2% in April and tumbling 17% in March. Palladium rose 74% last year. Currently, the DG spot price is down $24.50 an ounce to $1307.50.
Spot platinum increased 1.4% Thursday to $1,904.40 an ounce. It lost 1.2% in the first four days of the week. It dropped 3.2% in May after gaining 1.3% in April and declining 17% in March. Platinum increased 122% in 2025. The DG spot price is currently down $50.20 an ounce to $1854.70.
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