Once again weaker US data has investors eyeing up a rate cut by the Fed. Investors are so carried away with the prospect of lower rates that they as good as ignored Trump’s latest half a trillion-dollar threat on China.
185,000 jobs created vs 263,000 May
Hourly earnings 0.3% vs 0.2% May
Annual earnings 3.2% vs. 3.2% May
Unemployment 3.6% vs 3.6% May
Weaker job creation and stalling wage growth will boost expectations of a Fed cut sooner rather than later, pulling the dollar lower whilst lifting gold. Should the data surprise to the upside gold could be quickly paring gains.
Gold levels to watch:
The momentum of the gold run is still in play. Gold pushed through resistance at $1333, which now is its near term support. The bulls are aiming for $1346. This is the key resistance, the 2019 high so far. A mover above her could open the doors to $1367. On the downside a move below $1333 on stronger non farm payroll figures could see gold move lower towards $1323.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.