Gold rises on improved rate cut prospect off May jobs report

The 75,000 new jobs just posted for May will give Fed chief Jerome Powell cover to cut rates at the next meeting.

While Wall Street was looking for 175,000 it also missed on the average hourly earnings grew at 3.1% while the pundits were looking for 3.2%.

As I have written all week, the Fed needs to be cutting rates as talks with China are not focused on tariffs as much as a currency reset of the yuan versus the dollar.

Gold prices rose $12 an ounce on the jobs report reaching $1,350. Stock futures were little changed immediately, but should move higher on the better prospect of rate cut.

 

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