Diamond News

Overnight, gold was very steady along with other markets, trading narrowly between $1297..75 - $1300.65 while awaiting today’s US Payroll Report.

The DX was somewhat stable between 93.88 – 94.20, as the euro stabilized off news that Italy reached a deal on a new government, and ending a crisis that rattled global markets for days.

Global equities were mixed, with losses in Asia (NIKKEI off 0.1%, SCI down 0.7%), but firming in the Eurozone (+0.7% - 1.2%), while S&P futures were +0.4%. Weaker oil prices (WTI from $67 - $66.34, rising US production) weighed on stocks.

At around an hour before the Payroll Report was to be released and in an unprecedented move, Trump - who sees the data ahead of time - put out a tweet saying: “Looking forward to seeing the employment numbers at 8:30 this morning”.

This sent S&P futures up to 2719, and the US 10-year yield up to 2.902%. The dollar popped to 94.22, and gold plunged.

The yellow metal took out stops below the overnight low and yesterday’s low just under $1298, and $1296 (5/30 low) to reach $1294 – where support at the $1293 – 94 double bottom (5/24 and 5/29 lows) held.

At 8:30 AM, the Payroll Report was indeed better than expected. Non-Farm Payrolls rose by 223k (exp. 190k), with a +15k revision to the prior two months reports.

The Unemployment Rate ticked down to 3.8% (exp. 3.9%), and Average Hourly Earnings were up 0.3% (exp. 0.2%). S&P futures climbed higher, (+20 to 2726), while the 10-year yield rose further to 2.926%.

The DX soared to 94.35, and pressed gold lower. The metal fell further, tripping stops under the $1293-94 support level to reach $1289.25, where it found support at $1288-89...

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