Gold Falls Below $4,200, Erasing 2026 Gains as Fed Rate-Hike Bets Hit Crypto

Gold and Bitcoin are both sensitive to US interest rates and investor risk appetite. When US Labor Department employment data beat expectations, markets typically price in a steeper Federal Reserve rate-hike path, lifting the dollar and bond yields. That weakens the appeal of non-yielding gold and puts cryptocurrencies under pressure as capital flows out.

The latest shift followed US nonfarm payrolls data for May that far exceeded expectations, prompting markets to raise the probability of a Fed rate increase by the end of 2026 to about 70%. International gold prices then fell below $4,200 an ounce, erasing their gains since the start of 2026. The retreat from safe-haven assets also spilled into crypto markets, sending Bitcoin below the $60,000 threshold.