Marex Spectron Bullion Thoughts

Gold finished the week at its highest level in just over a month as the NFP figure came out much weaker than expected. That coupled with a lower revision for the previous month knocked 10 year yields and the dollar lower, which in turn boosted gold. In the light of recent weaker US economic figures, the consensus for a June rate hike is weakening and the entire concept of further raises this year is being called into question. This coupled with further problems in the White House, former FBI Director James Comey is due to testify on Thursday before the Senate Intelligence Committee, will keep gold supported for the near future. So focus will be on the next resistance level , which is more of a psychological one than anything else, of 1300. The high this year so far has been 1295, so it may be a tough level to break unless we get further bullish news.

The market is completely ruled by the aforementioned factors, so as always keep an eye on the news headlines and the US economic releases. This week they include PMI and Durable Goods today, Initial Jobless Claims on Thursday and Wholesale Inventories on Friday. So release wise, a fairly light week, but all eyes will be on the Thursday testimony to see whether the already damaged Presidency of Donald Trump will be dealt a further blow. This scenario will keep gold underpinned and I would look to add to long positions on a dip with a view for an attempt on 1300 at some stage in the next week.