Guangda Futures: Gold selling pressure slows down, focus on US employment data this week

On July 1, overnight London spot precious metals were initially suppressed and then rose, with SHFE gold up 0.80%. Non-farm employment data will be released this week, with market forecasts adding 110,000 new jobs in June and the unemployment rate remaining at 4.3%. The performance of the labor market may affect the future direction of the Federal Reserve's policy. Once the employment data shows strength, it will further strengthen expectations of a rate hike by the Federal Reserve, increasing downward pressure on gold. On the macroeconomic front, the number of job openings in the US JOLTS in May increased slightly to 7.594 million, slightly higher than April's 7.585 million and the expected 7.3 million, highlighting the resilience of the job market. The market is also awaiting guidance from the US June non-farm employment data on Friday. Geopolitically, the situation in the Middle East has added uncertainty. Although the US and Iran have signed a memorandum of understanding, the situation remains complex. Progress in navigation through the Strait of Hormuz is slow, and Israel continues to expand its military operations in the Palestinian territories and maintain high pressure on Iran. The current pricing logic in the precious metals market will still be dominated by the Federal Reserve's monetary policy path, and more data is needed to support whether the Federal Reserve will raise interest rates, such as non-farm employment data and later inflation data. Prior to this, the market may still lean towards a hawkish policy expectation, continuing to suppress gold. However, the Nasdaq index achieved three consecutive gains last night, boosting market risk appetite and slowing down the decline in gold prices dominated by liquidity, observing its sustainability.