Gold prices fluctuate as interest rates and US job data impact market.

Gold prices have been volatile in May, falling to a two-month low on May 31, due to shifting interest rate expectations. Markets have priced out the 100-basis points of easing by year-end, and there is growing acceptance that there could still be one more rate hike this summer. This shift in interest rate expectations is creating a challenging environment for gold, which is supporting the U.S. dollar, trading at a three-month high. However, central bank demand for gold remains strong, with 24% of central banks surveyed planning to buy gold in the next 12 months, providing solid support and value for investors.