Gold Under Pressure as Oil Prices Surge Amid US-Iran Tensions
The ongoing tensions between the U.S. and Iran have put downward pressure on gold prices. Amidst rising oil prices, which surged 3% to reach an intraday high of $97 for WTI crude oil, gold fell 1.2% to close at $4,434.29.
The ADP employment data released on June 3 showed that U.S. private payrolls added 122,000 in May, exceeding market expectations and indicating a strong labor market. This has led to concerns that the Federal Reserve may not pivot towards easing, supporting the U.S. dollar and Treasury yields, which are exerting downward pressure on gold.
The upcoming release of May non-farm payroll data is expected to have a significant impact on gold's short-term trajectory. If the figure is stronger than expected, it will likely reinforce the view that high interest rates will persist for longer, keeping gold under pressure.