Monday Metals Market News (1 July 2024) | Metals Move Sideways, Investors Eye Fresh U.S. Jobs Data

 

Monday Metals Market News (1 July 2024) | Markets Steady in Anticipation of Key U.S. Jobs Data Report

After a volatile last week, precious metal prices calmed this morning. Gold (+$7.07), silver (+$.38), and platinum (+$6.43) moved sideways, gaining little momentum in either direction. Expect more movement in the market as traders get closer to Friday. On July 5th, employment data from the U.S. Bureau of Labor Statistics will be released and could have a significant impact on all precious metal markets. 

Silver price-action this morning is optimistic for silver bulls, who continue their push for a consistent support at $30. Gold’s spot price barely gained on the day but remains well above the $2,300 support. Platinum-group metals have slowed after a chaotic finish in the green last Friday. Platinum prices are up by nearly $7 , and palladium logs yet another day of gains and is likely to finish above the $1,000 line. 

Below, here’s what to expect from Friday’s new employment data update, plus key market indicators to look for in July. 

For the week ending July 5, key events are:

– US ISM Manufacturing PMI data for June on Monday

– Fed Chair Powell’s Speech and US Job Openings on Tuesday

– Fed minutes on Wednesday

– US Market closed on Thursday

– US Jobs Report for June on Friday👇https://t.co/bHVrYA2dzG

— Global Markets Investor (@GlobalMktObserv) July 1, 2024

What to Expect From Friday’s Jobs Report 

This Friday’s job report data from the Bureau of Labor Statistics should give investors more insight into where precious metal prices may be heading. Markets will close for Independence Day on Wednesday, not reopening until Friday. When markets do open, they will open to fresh jobs data from the BLS. This report could have an immediate impact on precious metal prices if it reveals an unanticipated rise in the unemployment rate. 

Worse-than-expected unemployment data is likely to prompt more aggressive action from the Federal Reserve – which could include interest rate cuts at their next meeting on July 30-31. Because interest rate speculation has driven quite a bit of price-action for gold, silver, and platinum this year, Friday’s jobs report should have a significant impact on how markets move at the end of this shortened trading week. 

Brijesh Patel of Reuters expands on the impact that Friday’s jobs data could have on gold price-action: 

Gold prices edged higher on Monday, buoyed by some short covering from investors with focus turning to U.S. jobs data due later this week that could offer more cues around interest rate cuts by the Federal Reserve.

This morning, precious metal traders noted cooling markets after an especially volatile last week. This trend is unlikely to hold – expect an uptick in volatility in either direction as as the metals market responds to the latest jobs and unemployment data report this Friday. 

The jobs report is not the only major data dump likely to impact metals market during 4th of July week. Market watchers will also be following Federal Reserve Jerome Powell as he makes his remarks and releases minutes from the Fed’s last meeting.  

Fed Minutes Released Wednesday – Here’s What to Look Out For

Interest rate cuts have been the talk of the metals market for months. Rumors of rate cuts drove gold to new heights earlier this year, and other precious metals have largely followed suit. Recently, the Fed’s hawkish stance on interest rates has dampened expectations for multiple 2024 rate cuts, but lower rates are not yet out of the question. In the Fed’s June meeting, Powell walked back his promises of three total rate cuts this year, leading to a sharp drop in gold prices and short-term losses across all-three major precious metal markets. 

Prices have generally recovered in the weeks since the Federal Reserve’s hawkish comments, but Powell’s commentary and the meeting minutes Wednesday (3 July) should have an immediate impact upon market open Friday. Investors should look as much at the tone of Powell’s commentary as the minutes themselves. The gold market has been especially susceptible to volatile speculatory trading this quarter, and this trend will likely continue. 

A combination of fresh jobs data, commentary from Federal Reserve Chair Powell, and minutes from the Fed’s June meeting sets investors up for an eventful shortened week of metals market movement.

In a sense, this feels like the calm before a storm of price-action.