Although trading in the futures markets for precious metals, energies, grains, and other commodities is closed for trading tomorrow in honor of “Good Friday”, in this case, the government never rests. Tomorrow the Labor Department will release the most current data for its non-farm payroll jobs report for March.
This report will give market participants potential insight into the upcoming moves of the Federal Reserve regarding if they will raise rates, and if they do what will the rate hike amount to. It might also provide information as to whether or not a pause in rate hikes is imminent. Currently, economists are forecasting that 238,000 jobs were added in March. This is based on a median estimate from a poll by the Wall Street Journal.
Strong growth in US jobs is typically viewed as an extremely positive sign of economic growth and prosperity. However, the Federal Reserve regards a contracting labor market as an obstacle in their fight to reduce inflation. A tighter labor market leads to rising costs to pay employees which creates additional inflationary pressure.
Because the jobs report will occur when the precious metals markets are closed gold has had a moderate decline of $11.90 or 0.58% today as traders take profits. As of 5:45 PM gold futures basis, the most active June contract is fixed at $2023.70. On a technical basis, there is no resistance until $2069 the highest closing price for gold futures on record. With a short-term bias, you can use today's low of $2015 as a potential support level.ByFollow @garyswagner gary@thegoldforecast.com www.thegoldforecast.com