CommodityPremium

GOLD: Daily & Intraday Analysis Update

Precious metal erased about 4.5% to drop under $2,300 after jobs data indicated still-hot US economy.

  • Gold prices were tumbling for a second day in a row Monday after Friday’s job data shook the investment landscape. The yellow metal swiftly dropped 4.5% to end last week’s final trading day, moving from $2,390 to 2,290 per ounce. Early Monday morning, not much was changed for the safe-haven asset, which — this time — didn’t see any safe-haven demand. All thanks to nonfarm payrolls.
  • The nonfarm payrolls for May arrived at a hot 272,000. The lofty figure blasted above April’s 175,000 and way above the 180,000 expected by analysts. Now comes the complicated part — higher jobs number suggests an economy that’s growing more than anticipated. This, in turn, can sway the Federal Reserve into a passive stance when it comes to lowering interest rates. Because, why lower borrowing costs if businesses and consumers are doing better than fine?
  • This said, highly important reports are coming this week and they’ll help shed light on the way forward, including how the Fed might respond to economic conditions. On Wednesday, the US will release its inflation data for May and hopes are pinned at a 3.4% clip, flat from the prior month. Moreover, the US central bank will stir markets with its interest rate decision followed by a speech by Fed boss Jay Powell.

 

✅  Register or Login.

Related posts

Dollar Index: Weekly Report & Forecast Analysis

A.B.

EURUSD Daily & Intraday Technical Analysis

A.B.

GBPUSD: Intraday Analysis & Setup update

A.B.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More