Gold & Silver Steady Ahead of Inflation, Jobs Data
APMEX
7/12/2021 12:09:20 PM
Gold and Silver Remains Steady Ahead of Inflation and Jobs Data
The beginning of the week saw a firmer dollar, while overall risk appetite seems to have declined. Investors are waiting for cues from inflation and jobs data as major markets remain steady. Gold is currently looking range-bound around the $1,799 level, while silver is at $26.
The U.S. stock market is eying a mixed but quiet open. The S&P 500 experienced a modest dip after Friday’s record high, and the Nasdaq touched an all-time high in early Monday trading. The overall mood on Wall Street is hopeful, as second-quarter earnings for major corporations are set to be released throughout the week.
U.S. Treasury yields slipped this morning. Both the 10-year and 30-year Treasury notes declined ahead of inflation news. Inflation data is set to be released on Tuesday morning.
Many investors are looking for hints as to whether current inflation is indeed more transitory or if the data indicates a more sustained rise in costs. If the latter is true, the Fed may lean to a more hawkish stance and could adjust monetary policy sooner than expected.
For further indications regarding U.S. economic progress, traders are also looking to Thursday’s unemployment numbers. The latest unemployment news revealed an increase in payrolls but an increased unemployment rate. Following mixed data, more weight could be put into Thursday’s data as investors seek direction on the jobs front.
Investors around the globe are awaiting several central bank decisions regarding interest rates and monetary policy as economic reopening continues abroad. The Bank of Japan, the Bank of Canada, and the Reserve Bank of New Zealand are all expected to announce interest rate decisions throughout this week.
Fed Chair Jerome Powell is scheduled to provide the semiannual monetary policy report before Congress on Wednesday and Thursday. Fed speak, inflation news, along with yield and dollar movements, have all been driving factors for bullion prices in prior weeks. It seems likely that significant gold and silver price movements may follow any notable updates in the above areas.
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