The U.S. jobs report for June, announced yesterday, was stronger than expected. Many people thought the labor market was weak because of earlier data like the ADP jobs numbers, but the actual result was better than expected. This surprised the market.
Because of the strong jobs report, expectations for the U.S. Federal Reserve to cut interest rates soon became weaker. As a result, U.S. long-term interest rates and the U.S. dollar went up. Gold, which does not pay interest, dropped in price after going up for three days.
Yesterday was the U.S. Independence Day, so markets were closed in the afternoon. Today, the New York market will also be closed, so big price movements are not expected.
However, the U.S. House of Representatives passed the Trump tax cut bill yesterday, which may increase concerns about U.S. government debt. Because of this, gold prices may stay strong in the future.
Expected gold price range: 3305 to 3345 (50% chance)
Note: This information does not guarantee profits. Please make your own decisions when trading.