GoldGold has broken above its 50-day moving average (MA), a key technical indicator that had capped prices since early June, though remained in the sideways pattern since April.
Bullion’s presence above its 50-day MA could be determined by today’s incoming US jobs report.Gold is set to move closer to $2400 upon further signs of softening in the US labor market, which in turn ramps up hopes for Fed rate cuts later this year.
However, stronger-than-expected jobs data may force zero-yielding gold back below its 50-day MA.
Brent
Brent is holding around a fresh 2-month high, with oil bulls emboldened by the threat of Hurricane Beryl amplifying US supply risks.
The pullback in the US dollar, along with the biggest drop in US crude stockpiles in almost a year, have also added to the upside impetus for oil benchmarks this week.Oil prices may yet move higher as long as the seasonal rise in US summertime demand can stay true to expectations.A rebound for the US dollar in reaction to a stronger-than-expected US jobs report could also force oil prices to pare some of this week’s gains.
However, a weaker-than-expected US jobs report that prompts further declines in the greenback may bolster Brent closer towards $90/bbl.
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