Morning Snapshot: Gold defensive after payrolls beat
Gold is defensive at the low end of the recent range, after June jobs data came in better than expected. The beat may boost expectations of a September rate hike, although jobs has never really been the issue. Inflation and growth are the issues and both remain subdued.
June nonfarm payrolls came in at +222k, above expectations of +180k. May was revised up to 152k, from 138k previously.The jobless rate edged higher to 4.4%.
However, hourly earnings rose 0.2%, below expectations of +0.3%. May was revised down to just +0.1%. Average workweek ticked up to 34.5 hours. That does not bode well for higher inflation.
We’ll see how the market digests these mixed data. June PPI and CPI are out next week and both are expected to slow again notably.
Silver flash crashed more than a dollar overnight, before rebounding just as quickly. Reportedly 8500 futures contracts were dumped in just several minutes.