“The market’s focus has shifted from inflation fear to growth fragility,” noted Thomas Bucher, strategist at DWS. “That’s supportive for metals with defensive characteristics like gold.”
Labor Market Strength and Mixed Fed Rhetoric Shape Outlook
The latest JOLTS data showed 7.39 million job openings in April, beating the 7.34 million estimate. While this suggests labor market resilience, falling bond yields and a softer dollar indicate traders remain focused on Fed easing.
Fed officials remain divided. Atlanta Fed’s Raphael Bostic argued for caution, while Chicago’s Austan Goolsbee cited delayed inflation effects from tariffs. Governor Lisa Cook raised concerns over stagflation, warning that persistent trade disruptions could hinder growth while driving up prices.
These diverging viewpoints have injected uncertainty into markets, limiting directional conviction in gold or silver.
Focus Turns to NFP Report and Services PMI for Confirmation
Upcoming economic indicators, including Wednesday’s ADP private payrolls and the ISM Services PMI, are likely to impact short-term demand for the dollar and shape the momentum of precious metals.
However, Friday’s Nonfarm Payrolls (NFP) report remains the decisive catalyst. A strong reading may delay easing expectations, while a miss could fast-track rate cuts, supporting further gains in gold and silver.
