Strong employment figures signal a healthy economy, reducing the likelihood of an interest rate cut by the Federal Reserve.
Without rate cuts, gold becomes less attractive to investors, as higher interest rates increase the opportunity cost of holding non-yielding assets like gold and support a stronger dollar.
As a result, one of the usual triggers for gold price gains—expectation of monetary easing—is missing. This dynamic puts downward pressure on gold prices in the near term, despite broader market uncertainties.
