Gold prices slide in anticipation of US labor data

Gold prices plummeted today, June 3, with investors awaiting this week the release of key data on the US labor market activity to garner more clues about the possibility of the Federal Reserve slashing interest rates this year.

Bullion for August delivery fell 0.26%, or $6.20, to $2,339.60 an ounce at 09:15 am Makkah time, with spot prices also down 0.40% to $2,318.13 per ounce.

Silver futures for July delivery, likewise, tumbled 1.18% to $30.08 an ounce, as platinum spot prices slipped by 0.27% to $1,035.65 per ounce.

The yellow metal’s slump was offset by the US dollar index, which gauges the greenback's strength against a basket of six currencies, stabilizing at 104.61 points.

Investors project US interest rates to be fixed within the 5.25-5.50% range during the coming June, July and September meetings, with chances of 99.9%, 85.5% and 47.9%, respectively. There is a 46.3% probability that the first cut (25 basis points) would take place in November, versus a 34.1% chance for them to be kept unchanged, the CME FedWatch Tool indicated.

This is after data issued at the end of last week showed the stability of the Personal Consumption Expenditure Price Index at the monthly and annual levels in April.

Data on the available US job opportunities is scheduled to be out tomorrow, with expectations of a slight drop to 8.4 million from 8.49 million jobs. This is prior to the ADP report on US private-sector jobs on June 5, two days before the release of the non-farm payrolls report.