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Gold rose on Friday, climbing further from a two-month trough hit earlier in the week, as the dollar weakened and investors weighed prospects for U.S. Federal Reserve tightening after a strong U.S. jobs report that nevertheless showed a slight uptick in the unemployment rate.

·         Spot gold rose 0.4% to $1,784.21 per ounce by 1:42 pm EDT, after jumping to $1,794.86, its highest level since June 18.

·         U.S. gold futures settled up 0.4% at $1,783.30.

 

·         SPDR GOLD HOLDINGS:

 

·         U.S. employment likely accelerated in June as companies boost perks

 

·         Data showed U.S. non-farm payrolls increased by a bigger-than-expected 850,000 in June, although the unemployment rate rose to 5.9% from 5.8% in the previous month.

·         U.S. Fed officials have suggested recently that the central bank should begin to taper its asset purchases this year.

 

·         Strong jobs numbers throw markets focus back on data, Fed

A stronger than expected U.S. employment report is strengthening investors’ focus on economic data and the Federal Reserve’s next move, as markets cheer further evidence of a robust economic recovery amid worries over persistent inflation.

U.S. companies hired the most workers in 10 months in June, Friday’s data showed, raising wages to entice millions of unemployed Americans sitting at home in a tentative sign that a labor shortage hanging over the economy was starting to ease.

 

·         Fed's Daly: 'We're on our way' back to pre-crisis employment levels

Federal Reserve Bank of San Francisco President Mary Daly said Friday that at the current pace of job growth, averaged over the past three months, U.S. employment could regain its pre-crisis level by the end of next year.

 

·         Fed's Daly: Appropriate to consider tapering later this year

Federal Reserve Bank of San Francisco President Mary Daly said the U.S. central bank may be able to start reducing "a little bit" of its extraordinary support for the U.S. economy by the end of this year.

 

·         ‘Inflation is the silent killer,’ as many retirees are feeling the sting

The May consumer price index, measuring the cost of food, housing, gasoline, utilities and other goods, jumped by 5% from the previous year, according to the Labor Department. Food prices have increased by 2.2% over the past 12 months, and gasoline has swelled by 56.2%, recovering from pandemic dips.

While Federal Reserve officials have said these price increases are transitory, retirees like Linehan still worry about prices creeping up.

 

·         Phillip Streible, chief market strategist at Blue Line Futures in Chicago, said the data was unlikely to trigger a rush from the Fed to ease stimulus or begin interest rate hikes. He added that gold had also found some support as many analysts had expected a bigger upside surprise to the data.

 

·         Benchmark U.S. Treasury yields and the dollar fell after the report, buoying gold as lower yields reduce its opportunity cost.

 

·         Also on investors’ radar was the Delta coronavirus variant which has prompted some countries in Asia and Europe to walk back on reopening plans.

 

·         These concerns, and lower vaccination rates in some parts of the United States, could convince some investors the Fed will be cautious about hiking interest rates, supporting gold in the longer-term, said Bart Melek, head of commodity strategies at TD Securities.

 

But in the near-term, “gold is facing technical resistance at around $1,790 and will likely tread water until we see some weaker-than-expected economy data.”

 

·         Silver rose 1.4% to $26.39 per ounce.

·         Platinum gained 0.5% to $1,087.41.

·         Palladium was up 0.6% at $2,779.85.

 

·         Biden's July 4th Covid deadline and the promise of a president for all Americans

While Independence Day was supposed to serve as a benchmark for getting the pandemic under control, I think it also serves as a benchmark for the Biden administration more broadly.

But while the Fourth of July was supposed to serve as a benchmark for getting the pandemic under control, I think it also serves as a benchmark for the Biden administration more broadly. As Biden continues to push his landmark bipartisan infrastructure legislation, he has worked hard to hold true to his pledge to be a president for all Americans through bipartisanship and focusing on commonsense solutions to the Trump train wreck.

 

·         A new ETF is trying to make a movement out of activist investing

Earlier this month, Engine No. 1 came out of nowhere and won three Exxon Mobil board seats after a six-month proxy fight. The company says Exxon needed to significantly reduce emissions and move toward a cleaner energy strategy.

 

·         Bitcoin mining is now easier and more profitable as algorithm adjusts after China crackdown

 

·         France’s economy could see a steep recovery, experts say, but problems remain

France might still be in the throes of the coronavirus pandemic as the delta variant spreads rapidly, but officials and business leaders are looking ahead to a period of recovery and reflecting on the wider outlook for France’s political and economic future.

 

·         ECB's Knot says "inflation is not dead" in Europe - NRC interview

Rising inflation in Europe may not be temporary, Dutch central bank president Klaas Knot said in an interview published on Sunday in NRC Handelsblad.

“Inflation is not dead,” said Knot, known as one of the more hawkish members of the European Central Bank’s governing council.

 

·         All eyes on QE as Bank of Israel expected to hold interest rate

The Bank of Israel is expected to leave short-term interest rates unchanged this week for its 10th straight policy meeting, as debate continues over inflation gains.

 

·         CORONAVIRUS UPDATES:

 

Reference: Kitco, CNBC, Reuters, NBC, Worldometers