Key facts
- Gold prices fell 5% and silver slumped nearly 7%.
- Silver prices fell below $70/ounce.
- Robust US jobs data increased bets on further Federal Reserve rate hikes.
- Investor sentiment shifted away from safe-haven assets.
Gold and silver prices experienced significant declines, with gold falling 5% and silver dropping nearly 7% to trade below $70 per ounce. This sell-off in safe-haven assets is driven by recent robust jobs data, which has bolstered expectations for continued interest rate hikes by the Federal Reserve. The prospect of higher rates typically reduces the appeal of non-yielding assets like gold and silver, as investors anticipate better returns from interest-bearing instruments. The market's sentiment has shifted away from safe havens as economic indicators suggest a potentially stronger economy capable of withstanding further monetary tightening. Bullion declined as much as 2.5% as bond yields and the dollar climbed after the latest US data showed job growth topped all forecasts in May.