TechFlow News, June 6: Fueled by robust U.S. employment data, markets widely anticipate that the Federal Reserve may raise interest rates this year—exerting pressure on the gold market and causing gold to fully relinquish its gains for the year to date. During U.S. trading hours, spot gold fell approximately 3.5%, breaking below USD 4,320 per ounce and failing to sustain its upward momentum for the year. Concurrently, bond yields and the U.S. dollar index both rose. The strong labor market performance provides Fed officials with room to hike rates; however, escalating tensions in the Middle East have driven up energy prices. Rising interest rates typically weigh on non-yielding precious metals.
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