Gold steady ahead of employment data

The yellow metal suffered losses after yesterday’s minutes by the FOMC

By Nadia Elbilassy | @Nadia Elbilassy | 6 July 2023

Midday Market update
  • Markets wait on the release of ADP Non-Farm Employment Change and ISM Services PMI in the US

  • The dollar index rose to levels of 103.10

  • Oil is caught between supply shortages and concerns about global economic slowdown.

Oil prices steady ahead of OPEC+

The second day of OPEC's meeting is eagerly awaited as oil prices stabilize amidst concerns of a global economic slowdown. Brent crude futures climbed to $76.94 per barrel, while WTI rose to $72.16, supported by production cuts announced by Saudi Arabia and Russia, along with a decline in US crude inventories.

Gold rebounds after yesterday's drop

Gold, after experiencing declines, has found stability as traders await crucial economic data from the United States that could influence the future decisions of the Federal Reserve.

The ISM Services PMI and ADP Non-Farm Employment Change are among the data releases being monitored. Gold is currently trading near $1915 per ounce, with futures showing a slight retreat to $1924 per ounce.

Yesterday, gold faced significant declines following the release of the Federal Reserve's meeting minutes, which highlighted the intention to raise interest rates throughout 2023. While rates were kept unchanged in the June meeting, some members voted in favor of an increase to address inflation.

The Federal Reserve emphasized the importance of economic data in determining future monetary policy, hence the anticipation surrounding tonight's data release, as positive indications of US economic growth and rising inflation would support further interest rate hikes.