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Although a sign that the economy is running hot, the reading was in line with expectations and therefore a disappointment for inflation bulls that believe the Fed is making a mistake in keeping current policy unchanged.
Gold has been acting like a hedge against the central bank’s inaction when it comes to controlling inflationary pressures, and that’s the main reason why it saw such a large drop last week on the back of the Fed’s first acknowledgment that they may need to act sooner than later.
Fed Chairman Powell has already commented how he would like to see the jobs market pick up before the central bank makes any changes to policy, so Friday’s figures will be important given the last two disappointing readings.
Analysts are expecting 675k jobs to have been added in June.
The precious metal is likely to continue struggling to break above the 1,800 level during the start of this coming week as bullish momentum attempts to consolidate.
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