Gold Prices Edge Higher Amid LA Protests, Focus Shifts to Key Economic Data
Monday (June 9) – Spot gold prices rose slightly in early Asian trading, hovering near $3,317.62 per ounce, supported by geopolitical tensions following unrest in Los Angeles. The precious metal remains under pressure after a strong U.S. jobs report last Friday dampened hopes for an imminent Federal Reserve rate cut.
Key Market Drivers
1. LA Protests Boost Safe-Haven Demand
On Saturday, Los Angeles police declared a tactical alert after confrontations with protesters near the Edward Roybal Federal Building. The unrest, linked to broader social tensions, provided some safe-haven buying for gold, helping prices stabilize after last week’s decline.
2. Mixed Weekly Performance for Gold
Gold prices peaked near $3,380 early last week due to geopolitical concerns, but later retreated as trade optimism and strong U.S. jobs data weighed on bullion.
Monday (June 2): Gold surged ~3% to $3,380 amid Middle East tensions.
Thursday (June 6): Prices briefly touched $3,402 before reversing.
Friday (June 7): A stronger-than-expected jobs report sent gold down 1.22%, closing at $3,311.86.
Weekly Gain: ~0.65% (despite Friday’s drop).
3. Dollar Strengthens on Employment Data
The U.S. dollar index rose 0.47% last Friday to 99.20, supported by:
May nonfarm payrolls (+139K vs. expected +130K).
Unemployment rate steady at 4.2%.
Reduced Fed rate cut expectations (now priced in for September).
Moneycorp analyst Eugene Epstein noted that while Trump’s trade policies and fiscal uncertainty have weighed on the dollar, stronger economic data is reversing some bearish positioning.
Market Sentiment: Wall Street Divided, Retail Traders Bullish
Kitco Survey: Analysts Split, Retail Investors Optimistic
A Kitco News survey revealed mixed views among gold analysts, while retail traders remain bullish after gold held key support levels.
Wall Street Analysts (14 Participants)
50% (7 analysts): Expect gold prices to rise next week.
43% (6 analysts): Predict a decline.
7% (1 analyst): Forecast a sideways move.
Retail Traders (256 Votes)
66% (169 voters): Bullish on gold.
15% (39 voters): Bearish.
19% (48 voters): Expect consolidation.
Expert Opinions
Bullish Views
Adrian Day (Adrian Day Asset Mgmt): “North American investor demand is recovering—trends are shifting.”
Darin Newsom (Barchart): “Short-term setbacks possible, but gold remains a safe haven for central banks and long-term investors.”
Jim Wyckoff (Kitco): “Geopolitical risks persist, and technical charts remain bullish.”
Bearish Views
Adam Button (Forexlive): “If the U.S. and China reach a trade deal, gold could see a mild selloff as it’s being used as a proxy for trade tensions.”
Marc Chandler (Bannockburn): “Strong jobs data and expected robust CPI could support the dollar, pushing gold below $3,300.”
Neutral/Cautious Views
Kevin Grady (Phoenix Futures): “Last Friday’s drop was likely profit-taking. Investors are waiting for CPI data, trade talks, and bond yields before committing.”
Sean Lusk (Walsh Trading): “The jobs report eased recession fears, boosting the dollar and yields, which pressure gold. If key support levels (3,294−3,287, especially May low of $3,150) break, a sharp correction could follow.”
Key Events to Watch This Week
U.S. CPI Data (Wednesday) – A higher-than-expected inflation reading could strengthen the dollar and weigh on gold.
U.S.-China Trade Talks – Any progress toward a deal may reduce safe-haven demand for gold.
Federal Reserve Speakers – Any hints on rate cuts could impact gold’s trajectory.
Technical Outlook
Immediate Support: $3,300 (psychological level)
Key Resistance: $3,380 (June 2 high)
Bullish Case: If gold holds above 3,300∗∗andbreaks∗∗3,380, further upside toward $3,400+ is possible.
Bearish Case: A drop below 3,300∗∗couldtriggersellingtoward∗∗3,250-$3,200.
Conclusion
Gold prices are in a holding pattern as traders weigh trade uncertainties, CPI data, and Fed policy expectations. While retail investors remain bullish, Wall Street analysts are divided, suggesting potential volatility ahead.
Related topics:
