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USAGOLD/Peter Grant/08-04-17
Gold has retreated into the recent range following this morning’s better than expected jobs report for July. The low for the week at 1256.50 remains protected at this point.
Nonfarm payrolls rose 209k in July, above expectations of +181k. June was adjusted higher as well to 231k. The unemployment rate edged lower to 4.3%. Hourly earnings rose 0.3%, in line with expectations.
That’s a good jobs report, but it does not improve the odds of a September rate hike. The anticipated pause in the Fed’s tightening cycle is based exclusively on the absence of inflation.
Nonetheless, gold posted solid gains over the previous 3-weeks and the dollar has fallen significantly. The jobs numbers is perhaps a good excuse to take some profits ahead of the weekend.
However, I suspect downticks in gold will attract buying interest, and upticks in the dollar will attract sellers. The fundamentals continue to favor the respective trends.
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