International gold prices fell below the $4,200-per-ounce mark during the European trading session on June 10, erasing all gains accumulated this year. As of 5:15 p.m. Beijing time, August-delivery gold futures on the NYMEX were at $4,188.70 per ounce, marking a 2.28% drop. Year-to-date, gold prices have declined by 3.51%.
The decline follows stronger-than-expected U.S. nonfarm payrolls data, which highlighted the resilience of the U.S. labor market. This has led to increased market expectations of a Federal Reserve rate hike, with CME Group's "FedWatch Tool" indicating a nearly 70% probability of at least a 25-basis-point increase by year-end. Such a move could diminish the attractiveness of non-yielding assets like gold amid ongoing inflationary pressures.
Gold Prices Fall Below $4,200, Erasing Yearly Gains
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