The metal fell roughly 3% to $4,327.40 an ounce, capping a weekly loss of more than 4%. Silver fared worse, shedding over 7% on the day to land at $68.28, marking a 9% weekly decline. Analysts suggest that while the immediate technical breakdown is significant, the long-term outlook for precious metals remains anchored by institutional demand and inflation hedging.

Jan Groen of Societe Generale noted that the robust labor data provides the Federal Reserve with more leeway to prioritize inflation at the June FOMC meeting. Despite the near-term pressure, market strategists like Phillip Streible of Blue Line Futures view the current selloff as a potential buying opportunity rather than a structural shift. This sentiment is echoed by Robert Minter of abrdn, who expects central banks to increase gold purchases to offset sovereign debt risks. While market participants brace for upcoming U.S. inflation data and central bank meetings in Canada and Europe, experts like Eugenia Mykuliak of B2PRIME Group argue that the metal's role as a reserve asset remains resilient against short-term volatility.