July 2, 2021

What Will Happen To Gold As Investors Await NFP Data?

 Current market sentiment, which is concerned about the spread of the Delta coronavirus variant, continued to support gold trading to trade stable on Friday.

Entering the European session, spot gold traded higher around $ 1,777 an ounce, slightly down from its daily high it reached on Thursday at $ 1,782 an ounce.

The sharp increase in cases of infection due to the very rapid spread of Delta variants, has resulted in countries in Asia and Europe refraining from reopening their economies.

This has led investors to turn to gold safe-haven assets as protection from economic uncertainty.

The yellow metal also gained support from the reading of PMI data which was below market expectations. The ISM manufacturing index showed weaker -than -expected growth in June, rising 60.6 from 61.2 recorded the previous month.

The US NFP jobs report to be released tonight will be the next main focus of the market, where it is expected to increase by 690,000 in June.

The employment component in the manufacturing sector contracted for the first time in 7 months, raising concerns over tonight’s NFP figures. Following that, investors took a cautious approach in placing positions.