Gold prices fell more than 1% on Friday after the release of stronger-than-expected U.S. nonfarm payroll data for May, prompting investors to reassess the Federal Reserve’s potential rate trajectory. The U.S. economy added 139,000 jobs in May, surpassing analyst expectations of around 120,000, although the figure marked a slight decline from the revised 147,000 jobs reported in April.
At 2:29 am ET, spot gold was down 1.10% at $3,315.94 per ounce. In contrast, other precious metals gained: silver rose 0.85% to $35.96, platinum advanced 2.13% to $1,164.23, and palladium surged 4.09% to $1,033.34 per ounce.
The unemployment rate held steady at 4.2%, remaining near historic lows, but the broader labor data suggested signs of a gradual economic slowdown. The employment-population ratio slipped to 59.7%, the lowest level since the pandemic, while the alternative U-6 unemployment measure rose to 4.5%, its highest since COVID-era lows.
Notably, the federal government lost 22,000 jobs in May, contributing to a total decline of 59,000 federal roles since January. The cuts are linked to Trump administration reforms and Elon Musk’s Department of Government Efficiency initiative.
Despite these mixed signals, President Donald Trump took to Truth Social, writing: “AMERICA IS HOT! SIX MONTHS AGO IT WAS COLD AS ICE! BORDER IS CLOSED, PRICES ARE DOWN. WAGES ARE UP!”
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