I hope you all held on to your hats as the storm that was Non Farm Payroll (NFP) swept through the town. Despite the coronavirus, July NFP figures show that the economy continues to add jobs. NFP came in better than expected at 1.76 million new jobs after economist predicted 1.6 million new jobs. June recorded a reading of 11.1% unemployment primarily due to coronavirus lock down. However July has seen a decline in the unemployment rate at 10.2%. However future improvement will be seen at a much slower rate with the pace of re-oping at a slower rate and a full recover wont be seen for year to come. There are still about 10 million people who have not returned to the jobs market which we need to keep in mind for future analysis.
With this said, Gold remains the bulls favorite. Although it saw a 2% pullback on Friday amid announcements out of the US economist are still predicting a serge past 2100 and we could even see it reach 3ooo. With Central Banks injecting stimulus into the economy to try and create some sort of stability, we see a lot of liquidity needing to find a place to park itself. The options here are gold or equities. But a pullback is still expected albeit short lived as traders sit and wait on the sidelines for these pullbacks to jump in at better levels. Meaning the general consensus is that gold is still a wave people are willing to ride.