The Daily Market Report: Gold Rebounds Back Toward $1200 to Start the Week

04-May (USAGOLD) — Gold has rebounded yet again from a dip into the low end of the range. While this leaves the yellow metal well contained within said range, buyers continue to find an 11-handle appealing.

In the wake of recent softness in U.S. data, expectations that the Fed won’t tighten this year have been heightened. This has weighed on the dollar, even as the yield on 10-year Treasury notes continue to be buoyed above 2%.

U.S. factory orders for April came out this morning, near expectations at +2.1%. However, March was negatively revised from +0.2% to -0.1%. This suggests that the terrible Q1 GDP print that came out last week may actually be even worse when the first revision comes out.

Focus is already on Friday’s employment report. Consensus is running around +225k, which is actually down from +228k last week. That’s a little surprising: I was actually expecting the median forecast to rise in the wake of the sharp drop in initial claims we saw last Thursday.

Yet another Greek ‘deadline’ has come and gone. Greece was hopeful that a deal would be struck with its creditors by Sunday. Now they are talking sometime in May, but the country is already essentially broke.

Even if a compromise were reached, the next — and final — tranche of bailout money buys Greece maybe another two-months. After that, a whole new bailout deal would have to be struck to avert a default. Odds that another bailout is possible are pretty slim.

A default is seemingly inevitable. Whether that ultimately results in Greece being ousted from — or choosing to leave — the eurozone remains to be seen. In either event, the repercussions could be severe and far-reaching.