Gold prices fall following strong US non-farm payroll data

Global gold prices experienced a sharp decline following the release of robust US employment data. October non-farm payrolls increased by 165,000, significantly exceeding the forecasted 65,000. This strong hiring data, combined with a decline in the unemployment rate to 4.1%, has reinforced perceptions of US economic resilience.

The positive labor market data has shifted market expectations regarding Federal Reserve policy. According to CME FedWatch Tool data, the probability of a rate hike in December has risen, as investors anticipate the Fed may not need to pivot toward monetary easing as quickly as previously expected. Consequently, gold contracts saw a significant pullback, though bullion remained up for the week.

In Vietnam, domestic gold prices also saw a downward trend. SJC gold bars decreased by approximately 1.5 million VND per tael, while 9999 gold rings also experienced price drops across various local brands. The spread between buying and selling prices has widened as companies implement risk management measures due to high market volatility.