Gold has struggled so far this week after enjoying a two-week winning streak in May. Up until now, the buck-denominated metal has been supported above all by a soft US dollar. But with the greenback showing signs of life after Thursday’s release of strong ADP employment figures, expectations about a June rate hike have risen closer to 100% again. Those expectations would be further cemented if we have a strong nonfarm payrolls report today. As a result, the dollar may rally which could undermine the precious metal.
We see WTI crude oil futures up again today (+1.19%). From the March 27th low, oil prices have rallied 6 dollars or around 14 %. The oil price is hitting an important resistance line today, so a small pullback may occur.