Analysis: Nonfarm Payroll Report Unlikely to Alter Fed’s Wait-and-See Stance

On July 6, after non-farm payroll data showed that the U.S. economy added significantly more jobs than expected and the unemployment rate unexpectedly declined, gold experienced temporary pressure in the previous trading session.

However, XS.com analyst Linh Tran stated in a report that the data does not indicate an overheated economy, but rather reflects a relatively stable pace of growth. Tran noted that this is not enough to force the Federal Reserve to reconsider its wait-and-see stance on monetary policy, which is also why gold prices did not fall further. (Jin10)