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Gold prices fell internationally, China's gold purchases halted
Gold prices fell more than 2 percent internationally. Analysts attributed the decline to higher-than-expected employment growth in the US and weak purchases by major buyers in China. Benchmark gold futures fell 2.43% to US$2332.85 an ounce. The scarcity of gold makes it highly vulnerable to supply and demand imbalances.
Gold prices fell more than 2% globally on Friday, with two main reasons behind them. First, higher-than-expected employment growth in the US and a halt in gold purchases by China.
Benchmark gold futures dropped 2.43% to US$2,332.85 per ounce. Analysts linked the fall to solid US job figures, which could signal a pause in the Federal Reserve's anticipated interest rate cuts. Low interest rates tend to make gold, a non-yielding asset, more appealing to investors.
China's central bank reportedly ceased adding to its gold holdings in May, ending an 18-month streak of acquisitions. The interruption by a large buyer dampened investor sentiment even more.
The price decline is a slight correction following a big surge in gold. Despite the current decrease, gold prices remain up around 15% this year.
