| Gold: With the U.S. employment picture seemingly gaining traction, markets will increasingly start paying more attention to any whiffs of inflation, says Charles Nedoss, senior market strategist with LaSalle Futures. The Labor Department says June nonfarm payrolls rose 288,000 for the fifth straight rise of more than 200,000, while the jobless rate fell to 6.1%. Comex August gold is lower after the data but the technical picture remains positive with the metal above $1,305 an ounce, Nedoss says. “The next thing is the inflation play will come in,” he says. The details of the report showed that average hourly earnings rose by 6 cents to $24.45 after a 6-cent increase in May. As the labor market continues to improve, there are likely to be more “quality jobs” added that mean higher pay, Nedoss continues. “We’re going to start to be in an environment where wage pressures become a lot more important and are watched,” he says. |
