Gold Drops Below $4,500 After 172K Jobs; 2026 Prices Forecast +43%
AAAU•Gold slid below $4,500 after U.S. May payrolls beat estimates with 172,000 jobs, driving Treasury yields higher and pressuring the rate-cut trade. Global mine production and recycling are projected to increase modestly next year even as demand dips, but average gold prices are predicted to climb 43% to $4,920.
1. Gold Price Slide
Gold prices tumbled below the $4,500 mark as investors reacted to stronger-than-expected U.S. employment figures. The break under this level represents the largest one-day drop since late March.
2. Impact of U.S. Jobs Data
May payrolls surged by 172,000, exceeding consensus forecasts and lifting Treasury yields. Higher yields bolstered the dollar and eroded the appeal of non-yielding gold holdings.
3. Technical Support Breach
The slip under a long-term support zone near $4,500 has triggered technical sell signals, prompting stop-loss orders and short positions. Analysts view this as a key juncture for potential further downside or a rebound buying opportunity.
4. 2026 Supply, Demand and Price Outlook
Global mine output and recycled supply are set to grow modestly next year even as overall demand contracts. Despite this, average gold prices are forecast to surge 43% to $4,920 on sustained investor appetite.
