The key US non-farm payrolls data for June, to be released later tonight, will provide further clues for investors regarding whether the Federal Reserve has a basis for raising interest rates. If the data is higher than the consensus expectation of 110,000, and the previous figure was revised upwards from 172,000, this favorable job market environment should further increase investors’ expectations that the Fed has a basis for raising interest rates, thus suppressing their risk-averse appetite for buying gold. Conversely, if the US June non-farm payrolls data is significantly lower than the consensus expectation and the previous figure, investors’ risk appetite for buying gold at lower levels will be boosted, driving a rebound in gold prices.

On the other hand, if US crude oil prices gradually decline in the short term, approaching the $62 per barrel level, the decline in oil prices will alleviate inflationary pressures, which should encourage investors to buy gold at lower prices, providing important evidence for gold prices to find support at lower levels.

A short position can be established around $4,098, with a short-term target of $3,974 for profit-taking, and a stop-loss at $4,118.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com