Gold, Silver Prices Plunge on June 6 as Stronger US Jobs Data Fuels Fed Rate Hike Concerns

According to Jin10, gold and silver prices plunged on June 6 following stronger-than-expected U.S. May non-farm employment data, which sparked market concerns over potential Federal Reserve interest rate hikes later this year. Tech and semiconductor stocks, which had logged record gains over the prior nine weeks, fell sharply.

Analysts attributed the metal selloff partly to investors reducing gold holdings to cover losses in other assets. Bart Melek, global commodities strategist at TD Securities, noted that with the Fed showing little appetite to cut rates amid persistent inflation and geopolitical tensions, the cost of holding gold is rising.