Opinion with Peter Hug
President’s Tweet Implies Good Job Numbers Today
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold prices are under some selling pressure ahead of this morning’s U.S. payroll data. The fact that that the President tweeted his anticipation of seeing the numbers, when he has already been briefed on the data release, suggests the job creation number may be on the high side. The Fed is no longer looking at the jobs number but their gauge is the average hourly earnings number, which if higher would suggest higher wage inflation. A pop in this metric should create a resumption in dollar strength and accelerate selling in gold. We would expect support at $1,287 but a breach here suggests a trade as low as $1,282. The upside remains firmly corralled at the 200- day moving average around $1,308.