Gold price falls below $4,200, erasing all 2026 gains

Following a decline during the Asian session on the 10th, international gold prices continued to drop during European trading hours, briefly falling below $4,200 per ounce and erasing all gains for the year. As of 17:15 Beijing time on the 10th, the COMEX August gold futures price stood at $4,188.70 per ounce, down 2.28%. At current levels, international gold prices have fallen 3.51% year-to-date. Analysis indicates that last Friday’s U.S. non-farm payroll data significantly exceeded market expectations, demonstrating continued resilience in the U.S. labor market. Amid inflationary risks stemming from conflicts in the Middle East, markets have recently increasingly priced in the likelihood of the Federal Reserve shifting toward rate hikes in the second half of the year. According to CME’s “FedWatch Tool,” market participants currently assign nearly a 70% probability that the Fed will raise rates by at least 25 basis points by the end of this year. Should the Fed initiate rate hikes, it would diminish the appeal of yield-free assets such as gold. (Jin10)