The organization of the petroleum exporting countries (OPEC) and non-OPEC oil producers (Russia) will meet on July 1-2.
Gold dives before the publication of the employment report
On Friday, during the morning European trading session gold headed south because of a moderate jump in the evergreen buck. Market participants are actually expecting a report on employment in the United States in April.
Gold futures headed south by 0.23% coming up with an outcome of $1309.70.
Besides this, the US dollar index that appreciates the purchasing power of the major American currency against a group of six main currencies managed to ascend by up to 0.12%, ending up with 90.23.
Assets, which are traded in the US dollar, such as gold, turn out to be sensitive to any change in the greenback’s exchange rate. As a rule, a depreciation of the evergreen buck makes the most popular precious metal more affordable for those, who keep other currencies – it ramps up the demand for this precious commodity.
In addition to this market players are waiting for a monthly report on employment.
As follows from the consensus estimate, workplaces are anticipated to go up by 189 thousand having soared by 103 thousand in March. Additionally, it’s believed that after the March value of 4.1%, in April the unemployment rate in the United States is going to slump to 4%.
The key focus will be on the average hourly wage in America. As follows from the forecasts, it’s going to jump by 0.2% having soared by 0.3% a month earlier. According to estimates, on an annualized basis, wage surge will account for 2.7%, intact from March.
Steady surge in wages gives boost to inflationary pressures as well as the continuation of a gradual tightening of the monetary policy of the key US financial institution.
Meanwhile, silver futures headed south by 0.2% hitting $16.410 a troy ounce, thus demonstrating the lowest result since mid-July.
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