Precious metals take a big knock in thin trade, Gold down $5.00
|Precious metals have just dropped considerably with little out there in the way of information.
The markets are thin and Silver dropped from 16.09oz to 15.09 in a matter of minutes, recovering back 15.85oz while gold $1,225 to $1,220 in the same time frame. Platinum from 911.59oz to 902.53oz then back to 909oz before pressured back to 906.55 at the time of writing.
Nonfarm Payrolls preview: And here comes another soft report
In respect to gold, the price action was choppy between 1,222.50 and 1,227.37 overnight, underpinned by weakness in the DXY on the back of higher euro yields and poor US data. The ECB are sounding hawkish while the US data did not stack up to beat expectations ahead of today's key nonfarm payrolls. However, analysts at Nomura who were looking below the general market consensus for the ADP result are confident of the nonfarm payrolls being a positive report. "The ADP numbers today support our forecast of a healthy reading tomorrow for the BLS employment report for June, with some upside risk due to seasonal factors involving the Memorial Day weekend in May."
Gold could suffer further on a strong or an inline nonfarm payrolls number with $1,217 and $1,214 as the next key downside targets ahead of $1,211min March highs guarding the psychological $1,200 round level. Bulls need to get back above $1,242 in order to start to feel less uncomfortable.
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