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Howie Lee, an economist at OCBC Bank, has been repeating the selling pressure on gold would only surface towards the end of the second quarter and the US NFP has triggered such a move. The $1600 level is the price expected for the yellow metal by the third quarter.

Read: Gold dives to fresh 1-month lows on stellar NFP report

Key quotes

“With almost three weeks left to the end of Q2, the exceptional US jobs report has sent gold tumbling below the $1700/oz level, closing at $1685/oz last Friday. Our bearish call on gold looks vindicated, even if it was previously contrarian to the general bullish gold views in the market.”

“We think prices might end at $1600/oz by Q3, although intensifying US-China tensions might provide support to falling prices.”