MTS Help Center

Gold rebounded from a more than two-week low on Friday after U.S. nonfarm payrolls did not rise as much as expected, although bullion was still on course to register its biggest weekly decline since March.

·         Spot gold jumped 1% to $1,889.27 per ounce by 1:46 p.m. EDT (1746 GMT), having earlier in the day hit its lowest since May 19 at $1,855.59. It was down 0.7% for the week so far.

 

·         U.S. gold futures settled up 1% at $1,892.

 

·         SPDR GOLD HOLDINGS:

·         “We’re seeing a modest rally in the wake of the slight miss on the nonfarm payrolls ... more than a few market watchers were looking for a much bigger number and when that didn’t occur the gold market bulls kind of gave a sigh of relief,” said Kitco Metals senior analyst Jim Wyckoff.

 

“The rebound that we’ve seen today keeps the uptrend on the daily chart alive in the gold market, and that’s encouraging for the bulls,” Wyckoff added.

 

·         U.S. nonfarm payrolls increased by 559,000 last month versus 650,000 forecast in a Reuters poll, while new orders for U.S.-made goods fell more than expected in April.

 

·         The dollar index eased from a three-week high, making gold more affordable for holders of other currencies, while benchmark 10-year Treasury yields also moved lower.

 

·         “Part of what we’re seeing in terms of the strength in gold are inflation expectations and those are partly based on the stronger economic data, like higher jobs growth, a broader recovery in the U.S. (and) parts of Europe, and China is still doing well,” said Jeffrey Christian, managing partner of CPM Group.

 

“Gold prices will probably continue to trade between $1,855 and $1,920-an-ounce levels,” Christian said.

 

·         Gold is often viewed as a hedge against inflation.

·         Silver gained 1% to $27.73 per ounce.

·         Palladium fell 0.1% to $2,837.54 per ounce.

·         Platinum rose 0.5% to $1,162.83 per ounce.

 

·         Dollar falls after U.S. jobs data dims hopes for Fed tightening

The dollar fell on Friday after U.S. nonfarm payrolls data showed hiring increased in May as the pandemic eased, but not as much as expected, tempering expectations the Federal Reserve will tighten monetary policy sooner, rather than later.

At 3 p.m. ET (1900 GMT), the dollar index was down 0.38% at 90.135, dropping from a three-week high earlier in the session.

The euro was up 0.31% at $1.21650 versus the dollar.

Elsewhere, the Japanese yen slid 0.71%, changing hands at 109.505 versus the dollar.

China’s yuan softened past the 6.40 level, having shrunk away from its three-year highs when China’s central bank moved to limit the currency’s gains earlier this week.

 

·         10-year Treasury yield falls after jobs report comes in just short of expectations

Treasury yields slid on Friday after the May jobs report that showed a smaller-than-expected gain in employment.

The yield on the benchmark 10-year Treasury note fell nearly seven basis points to 1.56% at 1:30 p.m. ET. The yield for the 30-year Treasury bond slid five basis points to 2.244%. Yields move inversely to prices. (One basis point equals 0.01 percentage points).

 

·         “This payroll number was a little disappointing,” said Edward Moya, a senior market analyst at OANDA.

The softer-than-expected report means there is no urgency for the Fed to begin tapering its monthly purchase of $120 billion in bonds to support the economy, he said.

“Bad news about the economy is good news for an ultra-accommodative Fed, which is going to keep the dollar on the ropes,” Moya said.

 

·         Foreign exchange strategists in a Reuters poll were almost evenly split on the dollar’s near-term direction following two months of broad weakness, as they await clearer signs from policymakers.

 

·         Cryptocurrencies fell after a tweet from Tesla boss Elon Musk appeared to lament a breakup with bitcoin.

Tesla’s big position in bitcoin and Musk’s large personal following often set crypto markets on edge whenever he tweets.

Bitcoin was down 5.3% at $37,155.27, while ether was down 4.2% at $2,697.43.

 

·         El Salvador's president says will send bill to make bitcoin legal tender

 

·         Foreign holdings of China bonds hit record in May on stronger yuan

Holdings by offshore investors of bonds traded in China’s interbank market stood at 3.68 trillion yuan ($575 billion) at the end of May, according to Reuters calculations using data released on Friday evening by China Central Depository & Clearing Co and the Shanghai Clearing House.

 

·         Biden cites 'historic progress' despite modest jobs report

Unemployment is down and wages are up, President Joe Biden said on Friday, as his administration touted data that left some economists concerned about the U.S. labor market.

"This is historic progress," Biden said in a speech. "None of this success is an accident. It isn't luck."

The Labor Department's closely watched employment report on Friday showed 559,000 nonfarm jobs created last month, with wages rising, though millions of unemployed Americans remained at home.

 

·         Biden rejects new GOP infrastructure offer but will meet with Sen. Capito again Monday

President Joe Biden rejected a new Republican infrastructure counteroffer on Friday, but will continue talks with Republicans next week as the White House considers whether it should abandon hopes for a bipartisan deal.

During a conversation with the president Friday, Sen. Shelley Moore Capito, R-W.V., proposed adding about $50 billion in spending to the GOP’s framework, White House press secretary Jen Psaki said in a statement. Republicans last put forward a $928 billion plan. Biden most recently proposed a $1.7 trillion package.

 

·         U.S. House Democrats propose $547 billion surface transport plan

 

·         Yellen says higher interest rates would be 'plus' for U.S., Fed- Bloomberg News

U.S. Treasury Secretary Janet Yellen said that President Joe Biden’s $4 trillion spending plan would be good for the U.S., even if it contributes to rising inflation and results in higher interest rates, Bloomberg News reported.

 

·         Powell says climate change is not a main factor in the Fed’s policy decisions

Federal Reserve Chairman Jerome Powell said Friday that climate change is not a main consideration for the central bank when formulating monetary policy.

Speaking on a panel of his global colleagues, the head of the U.S. central bank said taking on issues related to global warming is more for the government than for his institution.

 

·         ECB's Lagarde committed to further support for euro zone economy

 

 

·         G-7 nations reach historic deal on global tax reform

The finance ministers of the most advanced economies, known as the Group of Seven, have backed a U.S. proposal that calls for corporations around the world to pay at least a 15% tax on earnings.

 

·         U.S. Treasury's Yellen tells G7 to keep spending, says inflation will pass

U.S. Treasury Secretary Janet Yellen urged other rich nations on Saturday to keep up spending to support their economies even as the COVID-19 pandemic wanes, and said U.S. inflation this year would be elevated but transitory.

Yellen told a news conference after G7 finance ministers met in London that they needed to invest in a fight against climate change and inequality, even after putting their economies "back on track" from the enormous hit of the pandemic.

 

·         Biden-Putin summit a chance to catch a ‘falling knife,’ top Russian official says

The upcoming U.S.-Russia summit will be a critical moment in trying to revive poor relations between the two countries, Kirill Dmitriev, the CEO of Russia’s sovereign wealth fund RDIF, told CNBC Friday.

President Joe Biden is meeting President Vladimir Putin on June 16 in Geneva, Switzerland, in what will be their first face-to-face meeting since Biden took office. The summit takes place amid sanctions and allegations of election interference, human rights violations, differences over the Middle East and many other issues.

 

 

·         Coronavirus Update:

 

·         U.S. administers 301.6 mln doses of COVID-19 vaccines – CDC

 

·         Too soon to say if English lockdown will end June 21, Hancock says

British health minister Matt Hancock said on Sunday it was too early to say whether the government would stick to its plan to fully lift COVID-19 lockdown restrictions in England on June 21.

Hancock said there had been a “very significant” impact from the delta variant of COVID-19 first detected in India over the last month, which is now the dominant strain in England, according to official estimates.

 

·         U.S. boosts Taiwan’s Covid-19 fight with 750,000 vaccine doses