Yellow metal prices stabilized at the start of European trading today, Thursday, July 3, with the US dollar stabilizing amid anticipation of US non-farm payroll figures following negative private sector figures on Wednesday. Gold is trading down about 0.05% at $3,352 per ounce, while silver is trading at $37.02 per ounce, up 1.18%.
Unusually, markets are awaiting US non-farm payroll figures (NFP), unemployment figures, and wages. These figures are usually released on the first Friday of each month, but are brought forward by one day due to the Labor Day holiday tomorrow, Friday, in the United States. Estimates indicate that the US economy added 110,000 jobs in June, with the unemployment rate rising to 4.3%, and that wages will slow by 0.3%. Continued signs of a slowing US labor market are among the factors that have raised market expectations for an additional interest rate cut during the remainder of the year, reaching three more (September, October, and December). This underscores the importance of today’s figures, especially after private sector employment fell by 33,000 jobs on Wednesday for the first time in more than two years. If today’s figures fall below expectations, they are expected to reinforce expectations of a slowing US economy and increase the likelihood of a further rate cut. Expectations of a cut may even rise at the July meeting, which is currently estimated at only a 25% cut, according to the CME FedWatch tool. This would support the continued decline of the US dollar and the rise of the yellow metal. A World Gold Council report showed that central banks around the world added a net 20 tons of gold to official reserves in May. Central banks continue to bolster their reserves of the safe-haven metal amid escalating tensions in the Middle East. The National Bank of Kazakhstan led the way in purchases with 7 tons, while the Turkish and Polish National Banks added approximately 6 tons. In contrast, Singapore continued to lead the gold sales charts, disposing of 5 tons of its reserves in May, remaining the largest seller of gold since the beginning of the year, with a total of 27 tons.
Platinum is trading at $1,411, down 0.53%, while palladium is down 0.56%, trading at $1,148.