“The trend is still lower for now but once we can actually say we have reached peak-hawkishness, the outlook for gold will very likely shift to neutral (if not bullish) from bearish,” said Tom Essaye, a former Merrill Lynch trader and the founder of the Sevens Report newsletter. Click here to read the full article.
What’s in Today’s Report:
Futures are marginally higher mostly on momentum from yesterday’s rally, although a small reserve rate cut in China is also helping global stocks rally.
Economic data continued to underwhelm, as Japanese Household Spending (0.8% vs. (E) 1.0%) and German Industrial Production (-0.6% vs. (E) 0.4%) both missed estimates.
Today focus will be on two key events, the Jobs Report (E: Jobs: 160K, Unemployment: 3.7%, Wages: 0.3%) and a speech by Fed Chair Powell (12:30 p.m. ET). Short term momentum in the markets is clearly higher right now, so to extend this week’s rally, both events just need to be “Goldilocks” in so much as the job number hits our “Just Right” range, while Powell simply leaves the door open to more accommodation in September, and beyond.