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Gold futures extended recent gains on Friday, jumping to a six-week high as the June jobs report showed the unemployment rate rose to 4.1%, seen as a sign that high interest rates are slowing the economy.
There are other signs that the job market may be cooling, with average hourly earnings rising 3.9% from a year earlier, the smallest gain since 2021, and the number of people employed in April rising by a massive 206,000. A total of 111,000 jobs were added in May, downgraded.
Naeem Aslam, chief investment officer at Zaye Capital Markets, said the data “clearly demonstrates that the Fed faces significant challenges as the economy continues to deteriorate.” market observation.
“Weak labor market and services data in particular weighed on market expectations, raising the possibility of a rate cut by the Federal Reserve in the coming month,” Milad Azar of XTB Mena said, according to Dow Jones.
Front-month Comex gold (XAUUSD:CUR) for July delivery has ended +1.2% to 2,388.50/ounce, the highest settlement price since May 22, up 2.6% for the whole week.
In addition, the front month July Comex Silver (XAGUSD:CUR) ended +2.7% to $2.151 per ounce, the highest settlement price since May 30, up 7.3% this week, July copper (HG1:COM) closed +2.6% to $0.6585/lb, the highest level since June 6, up 6.1% this week.
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London Metal Exchange copper futures topped $10,000 a ton after Citigroup analysts predicted the industrial metal could retest the level amid investor optimism about China’s policy support, which could be launched at the mid-term Third Plenary Session of the Central Committee of the Communist Party of China Further stimulus to upgrade its renewable energy infrastructure – July.
The recent pullback in copper prices is mainly due to weak global manufacturing data. Citigroup said this is only temporary. As major economies begin to cut interest rates, copper prices have the opportunity to rise further and reach $12,000 per ton.
