Gold and Silver Face Breakouts On Surprise NFP Print
New York (Apr 4) Gold and silver are poised for breakouts on the back of the upcoming US payrolls data as traders shift out of the precious metals in recent trading. Meanwhile, crude oil has recovered back above the $100 a barrel mark despite a disappointing set of US economic figures released overnight.
Finger On The Trigger
The precious metals are facing a potentially volatile session ahead as traders keep their finger on the trigger ahead the March NFP report due shortly (details on the economic calendar here). Gold gave back some earlier gains in trading overnight, likely reflecting some repositioning in the lead up to the key piece of event risk.
A jobs added figure above the 200K currently anticipated by economists would likely spark US Dollar strength, which in turn would weigh on gold and silver. Similarly a drop in the unemployment rate below the 6.6% expected could exacerbate the extent of any declines. This is based on the idea that continued improvements in the US labour market support a more hawkish Federal Reserve which is broadly USD-positive.