Gold Intraday: Losing Shine as Safe Haven-Demand Fades
Yesterday, spot gold posted the largest daily decline since mid-April, diving 1.6% to $1,699, and confirmed our view that gold was losing steam. U.S. ADP jobs report showed a loss of 2.76 million private jobs in May, the reduction was much less than 9 million expected and 19.56 million in April.
ADP said "while the labor market is still reeling from the effects of the pandemic, job loss likely peaked in April, as many states have begun a phased reopening of businesses". This is another sign, after a robust Caxin China Services PMI released yesterday, which suggest that major economies are getting back on track.
With Nasdaq heading closer to its record high, it appears that profit taking in gold continues and funds are flowing back to the stocks market.
Later today, latest U.S. initial jobless claims are expected to fall below 2 million, which would be down for 9th straight week.
Source: Trading Economics, Trading Central