Gold Hits 2026 Low After Strong US Jobs Report; Banks Remain Bullish
Gold prices fell to their lowest point of 2026 following a much stronger-than-expected US jobs report, but several banks maintain a positive outlook.
Gold prices dropped to their lowest level of 2026 after the US Bureau of Labor Statistics reported that the economy added 172,000 jobs in May, nearly double the 85,000 analysts had forecast. The stronger-than-expected labor market data pushed the US dollar higher and led bond markets to price in a more hawkish Federal Reserve, putting pressure on gold.
Bank Consensus Remains Positive
Despite the sharp decline, four major banks that previously called for a gold bull run have not revised their bullish forecasts. Citing ongoing geopolitical uncertainties, central bank gold purchases, and potential inflation concerns, the institutions expect gold to recover and reach new highs later in the year.
Analysts noted that short-term pressure from a strong dollar and rising yields does not alter the long-term structural demand for gold as a safe-haven asset and portfolio diversifier.