Gold retreated on Thursday after stronger-than-expected U.S. employment data dimmed hopes for an imminent Federal Reserve rate cut. Spot prices slipped about 1% to $3,325.48 an ounce at 13:03 GMT, erasing the cautious gains built earlier in the week. The Labor Department said non-farm payrolls rose by 147,000 in June, comfortably above the 110,000 jobs economists had projected. The resilient labour market reinforced the view that the Fed can keep policy on hold for longer despite signs of cooling inflation. Traders trimmed wagers on near-term easing, with CME FedWatch now showing a 95% probability the central bank will leave rates unchanged at its 23–24 July meeting and pricing only 53 basis points of cuts by December, down from about 66 basis points before the report. The dollar index added roughly 0.4% to 97.135, while the two-year U.S. Treasury yield jumped nearly 10 basis points to 3.79%. A firmer greenback and higher yields increase the opportunity cost of holding the non-yielding metal, contributing to Thursday’s pullback.