The non-farm payroll numbers revealed that only 38,000 jobs were created in May, and the April numbers were revised lower to just 123,000. This was the lowest number of jobs created since 2010, precious metals are surging higher while the dollar crashes. A number this small immediately before the June Fed meeting should cause them to pause on their rate hike adventure.
I was expecting a bounce in metals and miners before prices eventually bottomed in June but such a weak jobs number may have changed things. It’s possible the cycle terminated early due to such a horrific employment report. In the chart of GLD (NYSE:GLD) (below) I show a trendline prices must stay beneath. If prices were to successfully close above it, then the 6-month cycle presumably bottomed short of my target area, and we will need to readjust our analysis.
GLD - If this is just a bounce like I was expecting, prices must remain below the red dashed trendline in GLD. Spot gold prices need to stay below approximately $1,270. 