EL7.AI
CommoditiesMediumUpdated•Originally published 6 June 2026•Updated 7 June 2026•
1 min read

Gold XAU/USD Plummets as Blowout U.S. Jobs Report Erases Rate Cut Hopes

Key Facts

1Gold broke below a key support zone held for over five weeks, leading to an accelerated decline.
2XAU/USD is currently testing the yearly open, a pivotal technical level that could determine future price direction.
3Strong U.S. economic data and shifting interest rate expectations have intensified selling pressure on gold.

In a move reflecting the resilience of the U.S. labor market and its direct impact on precious metals, gold prices plunged sharply, erasing previous technical gains. According to reports, a blowout U.S. payrolls report significantly diminished investor hopes for near-term interest rate cuts, triggering a broad sell-off in XAU/USD. The report sparked a surge in Treasury yields and the U.S. dollar, intensifying pressure on non-yielding bullion.

This price collapse follows Labor Department data showing job additions far exceeding forecasts, reinforcing the Federal Reserve's stance on maintaining a tight monetary policy. According to market data, silver XAG/USD saw sharp declines exceeding 4% in tandem with gold, while 10-year Treasury yields jumped to new yearly highs. This performance compares with the Dollar Index DXY stabilizing above the 104.80 level immediately following the data release.

Traders are now monitoring gold's ability to hold above psychological support levels, with the price settling at $2,293.10 (close June 7, 2026). Looking at the economic calendar, markets are awaiting the FOMC meeting on June 12 to assess updated interest rate projections (Dot Plot). Should bearish momentum persist, gold may test lower support levels near $2,250.