Steady Ahead Of US Payrolls

Gold is 0.2% higher in the Asia-Pac session, after closing little changed at $23567.69 on Thursday. US markets were closed for the 4^th of July holiday.

• Nevertheless, bullion is headed for consecutive weekly gains on firming expectations that the Federal Reserve will cut rates before year-end.
• US Nonfarm payrolls data due later today should help build a clearer picture of the US labour market and the policy outlook for the Federal Reserve.
• Nonfarm payrolls are expected to moderate in June after a surprisingly strong May. However, with heightened uncertainty around what is the genuine pace of employment growth - See MNIs Payroll Preview here
• Swaps traders are pricing around a 70% chance of a rate cut in September.
• Lower rates are typically positive for gold, which doesn’t pay interest.
• According to MNI’s technicals team, gold is in consolidation mode, with initial firm resistance at $2,387.8, the Jun 7 high.