Gold dives to new monthly lows following strong US employment data

• Gold falls to multi-week low after US labor market data exceeds expectations.
• China’s People’s Bank halts 18-month Gold buying spree, exerts downward pressure on XAU/USD.
• US Treasury yields surge with the 10-year yield up to 4.43%, bolstering the Greenback and pushing Gold’s price lower.
• Traders eye US inflation data and Fed policy meeting next week.

Gold prices plummeted to a four-week low after the US Bureau of Labor Statistics (BLS) revealed that the labor market remained strong, and China halted its purchase of the golden metal. Therefore, with the XAU/USD trading at $2,295, the non-yielding metal dropped by more than 3%.

The latest US Nonfarm Payrolls report for May revealed the labor market added more people to the workforce, smashing estimates. Despite that, the same report revealed an uptick in the Unemployment Rate, while Average Hourly Earnings witnessed a slight increase.