US jobs report throws a lifeline for gold; likely to trade in the $1900-$1950 range next week
gold traders as, depending on the US data released through the week, the metal swung from one end to the other end of its current trading range of $1900-$1950. The US macroeconomic data released in the week were mixed. ISM manufacturing (June) at 46 fell short of the expectation of 47.10 as ISM prices paid further softened from May.
May factory orders came in at 0.30%, thus missing the forecast of an increase of 0.80%. Durable goods orders for May were slightly better than the previous estimates.FOMC minutes of the June 14 meeting showed that most Committee members see higher rates by the end of the year. The FOMC doesn't see a rate cut this year.
US services PMI data at 53.90 topped the forecast of 51.20. ISM services price Index was recorded at 54.10 compared to the prior month's reading of 56.20. ISM services new orders jumped from 52.90 in May to 55.50 in June.
June's ADP data showed a blowout figure of 497K jobs, which meant a robust US nonfarm payroll report. However, the US nonfarm payroll report showed that the US nonfarm payrolls increased by 209k in June. Moreover, job gains in the last two months were revised lower by 110k jobs, which is a huge downward revision.
Nonetheless, average hourly earnings MoM at 0.40% beat the forecast of 0.30% as even YoY reading of 4.40% topped the forecast of 4.20%. In addition, average weekly hours for all employees increased from 34.30 in May to 34.30 in June, which amounts to millions of manhours of work. The unemployment and labour force participation rates were steady at 3.60% and 62.60%, respectively.
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