One of the strengths of the July NFP was the increase in wages by 0.3% and given the high consumer expectations it provides hope for growth in consumption in July, and hence the improvement in , which will be published on Friday. The market is also concerned about the confrontation between the US and North Korea, buying up gold intensively, but not showing much activity in the dollar. However, along with geopolitical tensions, the metal price may be affected by the growing doubt about the third increase in the Fed rate, which implies a further weakening of the dollar. This is confirmed by on the federal funds rate, according to which the chances of tightening in December fell to 28.1%.
Oil prices slightly increased thanks to a report from the , which reported that stocks fell by 7.8M barrels with a forecast of 2.2M barrels. Prices are trading in positive territory expecting that the EIA report will confirm a larger than expected reduction in commercial inventories in the US.
Arthur Idiatulin, Tickmill Market Analyst.
This analysis is provided as general market commentary and does not constitute investment advice.