After a significant rise yesterday, spot gold remains strong, currently trading above $2370 per ounce. Today, investors will focus on the U.S. nonfarm payrolls, which is expected to trigger significant movements in the gold market.
1. The ADP National employment fell short of expectations. Wednesday's data showed that U.S. private sector employment increased by 152,000 in May, below the expected 175,000 and April's 188,000.
2. Data released by the U.S. Department of Labor on Thursday showed that, for the week ending June 1, seasonally adjusted initial jobless claims rose to 229,000, higher than the expected 220,000, marking a four-week high.
3. The gold market's focus has shifted to Friday's nonfarm payrolls, which will provide the latest clues for assessing the U.S. labor market and the Federal Reserve's monetary policy outlook. The market expects U.S. nonfarm payrolls to increase by 185,000 in May, compared to an increase of 175,000 in April. The U.S. unemployment rate is expected to remain steady at 3.9%. Investors will also watch wage and labor force participation rate data, with average hourly earnings expected to rise by 0.3% month-over-month and 3.9% year-over-year, and the labor force participation rate expected to hold steady at 62.7%.
If the labor market continues to cool, it could bolster the Fed's confidence in cutting rates. Analysts believe that if the employment report continues to disappoint, a rate cut in September or even July could become possible, which would be bullish for gold prices.
Gold prices have recently regained an upward trend. If the data falls short of expectations and previous values, it could accelerate the rise in gold prices. It is recommended to promptly follow up with long positions after the data release. If the data exceeds expectations and previous values, it could have a short-term bearish impact on gold prices, leading to a pullback. However, considering the upward trend, it is advisable to establish long positions after stabilization.
Trading Strategy:
1. Open long positions at $2358.0 , add at $2353.0, stop loss at $2348.0. Rebound targets: $2368.0—$2372.0, break above $2381.0—$2396.0.
2. Follow up with long positions upon breaking $2363.0, stop loss at $2358.0. Upward targets: $2368.0—$2372.0, break above $2381.0—$2396.0.
1. The ADP National employment fell short of expectations. Wednesday's data showed that U.S. private sector employment increased by 152,000 in May, below the expected 175,000 and April's 188,000.
2. Data released by the U.S. Department of Labor on Thursday showed that, for the week ending June 1, seasonally adjusted initial jobless claims rose to 229,000, higher than the expected 220,000, marking a four-week high.
3. The gold market's focus has shifted to Friday's nonfarm payrolls, which will provide the latest clues for assessing the U.S. labor market and the Federal Reserve's monetary policy outlook. The market expects U.S. nonfarm payrolls to increase by 185,000 in May, compared to an increase of 175,000 in April. The U.S. unemployment rate is expected to remain steady at 3.9%. Investors will also watch wage and labor force participation rate data, with average hourly earnings expected to rise by 0.3% month-over-month and 3.9% year-over-year, and the labor force participation rate expected to hold steady at 62.7%.
If the labor market continues to cool, it could bolster the Fed's confidence in cutting rates. Analysts believe that if the employment report continues to disappoint, a rate cut in September or even July could become possible, which would be bullish for gold prices.
Gold prices have recently regained an upward trend. If the data falls short of expectations and previous values, it could accelerate the rise in gold prices. It is recommended to promptly follow up with long positions after the data release. If the data exceeds expectations and previous values, it could have a short-term bearish impact on gold prices, leading to a pullback. However, considering the upward trend, it is advisable to establish long positions after stabilization.
Trading Strategy:
1. Open long positions at $2358.0 , add at $2353.0, stop loss at $2348.0. Rebound targets: $2368.0—$2372.0, break above $2381.0—$2396.0.
2. Follow up with long positions upon breaking $2363.0, stop loss at $2358.0. Upward targets: $2368.0—$2372.0, break above $2381.0—$2396.0.