Much of the recent action in gold which has been lackluster at best, can be attributed to the dynamic moves in U.S. equities, coupled with the lower volume which is attributable to the summer months.
The lackluster performance of gold over the last five trading days cannot be attributed to market participants waiting upon the monthly U.S. jobs report which will be released on Friday of this week. The U.S. dollar had only fractional gains today trading up 0.06%. Gold gained the same percentage 0.06%.
According to CNBC, the U.S. Labor Department’s jobs report is expected to come in indicating 690,000 jobs again in June, compared with 559,000 jobs in May. The unemployment rate is projected to come in at 5.7% versus 5.8% the previous month. These projections are based upon a Reuters poll of economists.
One economist is projecting a surprise upside spike according to CNBC, “Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto. “The potential for an upside surprise (in the U.S. jobs data) that pulls monetary tapering and tightening expectations forward is looming ever bigger for investors.”
The actual numbers released on Friday will be key in reflecting the next big move in gold pricing. A strong U.S. jobs report would pressure gold lower, and inversely if the numbers come in below the current projected estimates, we could see gold trade higher and break above the 100-day moving average.
The lackluster performance of gold over the last five trading days cannot be attributed to market participants waiting upon the monthly U.S. jobs report which will be released on Friday of this week. The U.S. dollar had only fractional gains today trading up 0.06%. Gold gained the same percentage 0.06%.
According to CNBC, the U.S. Labor Department’s jobs report is expected to come in indicating 690,000 jobs again in June, compared with 559,000 jobs in May. The unemployment rate is projected to come in at 5.7% versus 5.8% the previous month. These projections are based upon a Reuters poll of economists.
One economist is projecting a surprise upside spike according to CNBC, “Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto. “The potential for an upside surprise (in the U.S. jobs data) that pulls monetary tapering and tightening expectations forward is looming ever bigger for investors.”
The actual numbers released on Friday will be key in reflecting the next big move in gold pricing. A strong U.S. jobs report would pressure gold lower, and inversely if the numbers come in below the current projected estimates, we could see gold trade higher and break above the 100-day moving average.