Gold Price Wipes Out Year-to-Date Gains, International Gold Price Continues to Decline

June 10 — International gold prices extended their decline through European trading on the same day, after a slump during the early Asian session earlier that day. The metal briefly dropped below the $4,200-per-ounce level, wiping out all gains for the year. As of 5:15 p.m. Beijing time, COMEX August gold futures stood at $4,188.70 per ounce, down 2.28%, marking a 3.51% year-to-date drop. Analysts attributed the sharp pullback to last Friday’s better-than-expected U.S. non-farm payroll data, which signals sustained underlying strength in America’s labor market. Amid inflation risks stemming from the Middle East conflict, markets are now leaning heavily toward bets that the Federal Reserve will raise interest rates in the second half of the year. According to CME Group’s FedWatch Tool, the market is pricing in a nearly 70% probability of at least a 25-basis-point rate hike by year-end. Rate increases reduce the appeal of non-interest-bearing assets like gold, further pressuring prices, per market observers.