EBC Markets Briefing | Bullion prices gain on a weak APD jobs report

Gold prices rose on Thursday, supported by softer than expected jobs data. Fed Chai Warsh said that inflation expectations and inflation risks have come down in recent weeks.

Goldman Sachs says the metal's disappointing performance over the past four months may not signal the end of the precious metal's rally this year, citing "EM central bank diversification".

The bank expects ETF positioning to gradually rise, and that the Fed will hold rates steady this year and delay an easing cycle until the second half of next year despite price pressures.

An OMFIF survey suggests central banks are becoming more committed to gold as a strategic monetary asset as they navigate an increasingly fragmented global financial system.

Sixty-one percent of respondents expect gold to trade between $5,000 and $6,000 by June 2027, while only 28% said higher prices are discouraging additional purchases.

Russia has started seaborne imports of gasoline from India, ​sources said, in an effort to mitigate fuel shortages triggered by ‌Ukrainian attacks on its energy infrastructure.

EBC Financial Group analyst says gold saw a death cross in late June, handing full control to the bears. Any short-term rally from the current $4,000 area should be treated as a bearish pullback rather than a trend reversal.

Asset recap

As of market close on 1 July, among EBC major products, Meta Platforms shares led gains after a report that the tech giant plans to enter the cloud infrastructure market by selling its excess AI computing capacity.

Micron Technology retreated amid chipmaker weakness. JPMorgan analyst Harlan Sur raised the price target on the stock to $1,540.00 while maintaining an "Overweight" rating.

Oil prices fell after Trump said US talks with Iran in Qatar are going well. Iranian state media reported that a ship ran aground in the Strait of Hormuz while using a route that was not approved by Tehran.

EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.