The U.S. Bureau of Labor Statistics will release its July nonfarm payrolls (NFP) report Friday morning. According to Wall Street surveys, U.S. employers hired 200,000 workers last month after adding 209,000 jobs in June. With this result, the jobless rate is seen holding steady at 3.6%, indicating that the labor market remains extremely tight.
Economists have consistently misjudged the resilience of the economy, leading to repeated underestimation of employment gains throughout the past year. Given this pattern and forecast bias, it is not unreasonable to believe that the NFP figures could again surprise to the upside, particularly since initial jobless claims, an indicator of layoffs, have headed lower of late.
The strength or weakness of the upcoming report relative to consensus estimates will be pivotal for the U.S. dollar, gold, and the S&P 500, significantly shaping their near-term trajectory. Therefore, traders should closely monitor the economic calendar in the coming days to adapt their strategies and make more informed investment/trading decisions.
GOLD
SELL 1942 - 1940
TP1: 1935
TP2: 1930
SL: 1947
Economists have consistently misjudged the resilience of the economy, leading to repeated underestimation of employment gains throughout the past year. Given this pattern and forecast bias, it is not unreasonable to believe that the NFP figures could again surprise to the upside, particularly since initial jobless claims, an indicator of layoffs, have headed lower of late.
The strength or weakness of the upcoming report relative to consensus estimates will be pivotal for the U.S. dollar, gold, and the S&P 500, significantly shaping their near-term trajectory. Therefore, traders should closely monitor the economic calendar in the coming days to adapt their strategies and make more informed investment/trading decisions.
GOLD
SELL 1942 - 1940 TP1: 1935
TP2: 1930
SL: 1947
Comment:
The precious metal was under pressure as the ADP report showed that the number of jobs in the private sector increased sharply in July. Specifically, there were 324,000 jobs created last month. The data significantly beat economists' expectations that about 191,000 would be generated. Newly released numbers showing the health of the job market continue to support expectations that the US Federal Reserve (FED) will continue to raise interest rates more.
Comment:
It can be seen that the gold market is facing a kind of "headwind" as the use of resilience, a healthy labor market and strong economic activity support the positive monetary policies of the United States. feed. Even so, TD Securities, a Canadian investment bank, still finds factors supporting gold reaching record highs later this year.
