ADP April job numbers came in better than expected this morning with 275,000 new jobs created in April, well over 180,000 level the street was expecting. In turn, this report boosted the Equity market and strengthened the U.S. Dollar.
The price of Gold had already dipped a bit overnight so, this report had little or no impact on the price.
Traders in Asia are enjoying week-long holidays, so we are seeing little action in the price of Gold from that side of the world. Still no significant news on the China trade talks, keeping traders here in the States from taking on any new positions.
The Dollar Index reached a high on April 23rd of 98.35, the highest level since June 2017, putting pressure on the price of Gold. Today we see the Dollar Index off its most recent high, trading in the 97.40 area, giving the price of Gold some breathing room to the upside.
The price of Palladium seems vulnerable at these levels. New supplies continue to emerge in the Zurich vaults as indicated by the EFP coming in now quoted at minus 20 / Flat. This news might convince some Commodity Hedge Funds to take some profits of the table at these levels putting more pressure on the price.
The Federal Reserve’s two-day meeting ends today with no rate change expected. The announcement will be at 2pm Eastern Time followed by a press conference from Fed Chair Jerome Powell.
Investors will be watching very closely to hear if the Fed Chairman says anything unexpected that could move the markets.
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