Gold and the SPDR Gold Trust (ETF) (NYSEARCA:GLD) advanced for yet another session today as the U.S. Dollar (CURRENCY:USD) pared further against the Yen. Traders are paying close attention to official U.S. employment numbers that are due to be released today. Gold Futures for August delivery rose 0.14% to $1,214.20 during Asian trade.
Jobs data to be decisive
As per technical indicators, support and resistance levels for gold futures are at $1,199 and $1,223.20 respectively. ADP nonfarm private employment data released yesterday showed that jobs grew by 173,000 in May as opposed to estimates of 175,000. Any large uptick in employment in today’s report could bolster early rate hike expectations by the Federal Reserve. Such an occurrence could derail gold from its current rally.
Gold Futures have been up by 15% during the first half of the year. However, analysts expect that buying interest in gold might not continue to the second half. In other metals, Silver Futures rose 0.62% to $16.125.
Among gold mining stocks, Newmont Mining Corp (NYSE:NEM) has received a rating downgrade from Jefferies. The research firm has revised outlook on the stock to “hold” from “buy.” This revision came alongside a reduction in the stock’s price target, which has been lowered to $33 from $38. Jefferies’ revised outlook stems from near-term gold price risk as the commodity faces headwinds of an early rate hike by the Federal Reserve. Moreover, absence of positive catalysts led the research firm to lower the price target and outlook for Newmont.
Meanwhile, Primero Mining Corp (NYSE:PPP) posted an update stating that it has issued a Notice of Intent in relation to a claim against the Government of Mexico, which it will present before international arbitration under the North American Free Trade Agreement (NAFTA). The company intends to highlight improper actions taken by the Government of Mexico, which were aimed at revoking the legal rights of the company.