Zhongjin Wealth Futures: Non-farm payroll in June added 57,000 jobs, far below expectations. The gold market sees an opportunity for rebound.

In June, non-farm employment increased by 57,000, far below market expectations, and the data for the previous two months was also revised downward. Although the unemployment rate fell to 4.2%, the main reason is the decrease in the labor force population, with a sudden drop of 700,000 in labor force participation for those aged 25-34 in a single month. After the data was released, market expectations for the next move by the Federal Reserve significantly shifted to a "wait-and-see" approach, leading to a sharp rebound in the price of gold. The current situation facing the Federal Reserve is one of employment not overheating and inflation expectations moderating, which means that the probability of rate hikes throughout the summer has suddenly decreased, providing a rebound opportunity for the gold market.