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Macro EconomyMedium•5 June 2026•

1 min read

US Labor Market Beats May Expectations as Gold Faces Selling Pressure

Key Facts

1The U.S. economy added 172,000 jobs in May, exceeding expectations despite economic uncertainty and war-related costs.

2The U.S. unemployment rate remained steady at a low 4.3% in May.

3Gold prices faced significant selling pressure as strong labor data fueled expectations for further Fed rate hikes.

In a move reflecting economic resilience despite geopolitical challenges, US job data showed unexpected growth during May. The economy added 172,000 new jobs, exceeding initial estimates despite war-related cost pressures and economic uncertainty. The unemployment rate remained steady at a low 4.3%, indicating continued labor market strength in the face of tight monetary policies.

This robust data triggered a broad sell-off in precious metals markets as investors increased bets that the Fed may be forced to hike rates again or maintain them at elevated levels for longer. Compared to other indicators, this growth shows sustained momentum alongside the ISM Manufacturing PMI, which recorded 54 points in early June per market data. Experts suggest that hiring strength provides the central bank with sufficient cover to combat inflation without immediate recession fears.

Traders should monitor spot gold levels which were negatively impacted by these figures, coinciding with anticipation for Fed Chair Jerome Powell's speech scheduled for May 31 per the economic calendar. Attention will also turn to upcoming inflation data to determine the trajectory of the USD and Gold. Based on available data, the labor market remains the primary driver for short-term interest rate expectations.