Gold prices dropped significantly following the release of the BLS report, which revealed that 339,000 new non-farm jobs were added last month - much higher than Wall Street's estimated increase of 190,000 jobs in May. The report also showed that the unemployment rate increased from a 53-year low of 3.4% in April to 3.7% last month.
This caused a strong rise in bond yields and the US dollar, resulting in a decline in gold prices relative to the US dollar. However, the main factor that caused the decline in gold and silver prices today was the selling pressure. Gold lost $29.90 per ounce in trading today, including $20.80 due to market participants actively selling and $9.10 due to the strength of the US dollar, according to KGX.
The possibility of the Federal Reserve raising interest rates at the FOMC meeting on June 14-15 is still high. Today's employment report increases the chances of a rate hike, even though the Fed decided to hold off on raising rates this month. However, there is still a possibility of a rate hike later this year.
Comment
⋅
⭐️Make a trading plan: ✅Buy order in the $1,943-$1,940 price zone when the support zone is approached. ✖️Stoploss: $1,937.
✅Sell the $1,966-$1,963 range when the price hits the resistance area. ✖️Stoploss: $1,970.
AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!