Gold Dips Below $2,300 as Jobs Dash Fed Bets, China Buying Pause
- Swap traders no longer fully price in rate cut before December
- Metal dropped earlier after China gold reserves data released
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Gold dipped below $2,300 an ounce, falling the most in almost three years as surprise strength in a key US jobs report dashed hopes that the Federal Reserve will be able to start lowering borrowing costs soon.
Treasury yields and the dollar surged after the US government’s May employment report showed job growth exceeded expectations and wages were hot. Bullion slumped as much as 3.7%, the most since August 2021, while silver tumbled 7%. Base metals also extended declines.