Gold is holding the big gains for the week, since spiking to the highs on Tuesday it has been churning around the 1340 level. Silver continues to push hard trying to breakout and follow gold to new highs.
Today is Job’s Friday, which almost always creates a reaction in the metals because of the possible effect it will have on interest rates. We know that the Bond markets are pricing in a rate cut which chair Powell confirmed earlier this week.
The big question: Have Gold and Silver already accounted for a bad number with their rallies this week? The answer is a resounding probably. Most news is priced in and expected, the only curve ball for this report is the ADP jobs that came out on Wednesday which was the worst in years. ADP jobs and the Government report don’t always match, today could be wild, helping the metals breakout.
Because of the news the only thing to do before the number is to observe and be prepared to react after the number comes out at 8:30 EDT. There is no doubt that Gold is now trending up which should continue but will the jobs number help push gold above 1350, which is the key resistance.