Gold has posted losses in the Thursday session. In North American trade, the spot price for an ounce of gold is $1320.79, down 0.36% on the day. In economic news, unemployment claims disappointed and climbed to 231 thousand, well above the estimate of 220 thousand. On Friday, the US releases wage growth and nonfarm payrolls, so traders should be prepared from some movement from gold.
The US dollar has been under pressure since US President Trump proposed stiff tariffs on steel imports, much to the consternation of the European Union and other US trading partners. There is also strong domestic opposition to the proposal, as Republican lawmakers, including House Speaker Paul Ryan, have come out against the move. This has raised hopes that Trump will back down. There was further drama on Wednesday, as Gary Cohn, Trump’s chief economic adviser, resigned. Cohn was a strong advocate of free trade, so his resignation could weaken opposition in the White House to the tariffs. Will Trump make good on his threat or back off? Until the situation is resolved, traders should be prepared for continuing volatility in the markets.
Employment numbers continue to be in focus in the latter part of the week. On Wednesday, ADP nonfarm payrolls ticked upwards to 235 thousand, up from 234 thousand a month earlier. This easily beat expectations, boosting investor risk appetite and sending gold prices lower. The nonfarm payrolls report is also expected to remain steady, and if the indicator can again beat expectations, gold could continue to head south.
