Gold Regains Luster Thanks to Weak NFP
Date: July 2, 2026
Summary of the Article
The article discusses the impact of the June US labor market report on gold prices and the broader financial markets. The report revealed that the number of new non-farm payrolls (NFP) increased by only 57,000, significantly lower than the market expectations of around 110,000 to 113,000. This disappointing figure was compounded by a notable decline in the leisure sector, which saw a loss of 61,000 jobs in June alone. Additionally, previous employment data was revised downwards, with a total decline of 128,000 jobs over the last three months.
The weak labor market data led to a depreciation of the US dollar, which in turn benefited gold prices. As a result, gold is once again testing the $4,100 per ounce level. The market's expectations for interest rate hikes have also been adjusted downward, with traders now anticipating a potential rate hike in December rather than October, reflecting a more cautious stance from Federal Reserve officials.
Technical Analysis of Gold
From a technical perspective, the daily chart indicates a price rebound for gold, with support established at the $4,000 per ounce mark. The current price levels are the highest since June 23, and gold is testing the 38.2% retracement level of a significant upward trend that began in 2022. If gold successfully breaks through this resistance, the next target could be around $4,230 per ounce, which aligns with the upper limit of a descending wedge formation.
Market Context
The article also references other market developments, including a rapid decline in oil prices and comments from Federal Reserve official Kevin Warsh, who has tempered hawkish sentiments, providing further support for gold bulls. Additionally, there are ongoing discussions regarding inflation trends, with the UN suggesting that inflationary pressures may not be over.