Gold Traders Watching Wage Inflation Data

New York (Aug 3)  Traders are watching the release of July nonfarm payroll numbers this morning. Job creation numbers are expected to come in around 200,000, but the focus will be on wage pressures. If wage growth begins to nudge closer to 3% annualized, the market may begin to factor in a more aggressive Fed. We continue to see an opportunity for a bounce but gold needs to maintain the $1,207 level on a close basis. A break here would suggest the $1,187 number as a real possibility in the short term. Silver has seen good buying at these levels, and our ratio trade long silver/short gold at 82:1 remains in the money and we continue to look for a 74:1 print, from the current 78.3:1. Expect volatility around the employment number and then a narrow range for the balance of the day.

KitcoNews

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