Precious metals such as gold and silver witnessed extreme volatility today following the release of the US (NFP) report. Gold fell near 3%, while silver declined nearly 7%, leaving traders uncertain about the next direction of the market.
The sharp decline came after stronger than expected US employment data increased expectations that the Federal Reserve may maintain higher for longer. The US economy added 172000 jobs in May, significantly above market expectations of 85000, while the unemployment rate remained stable. The strong labor market data reduced hopes for near term rate cuts and pressured precious metals.
Meanwhile, the surged above $63.192, highlighting silver’s underperformance compared to gold. Currency markets also experienced heightened volatility after the data release.
Following the NFP Report:
- traded near $4369.62 per ounce
- traded around $68.945 per ounce
According to my view, the market may now be approaching an oversold condition. After such a sharp decline, profit booking in sell positions could emerge, potentially supporting a recovery move in both gold and silver during the coming sessions.
Intraday and Next Week Strategy for Gold and Silver Futures:
- Buy Gold August Futures
- Buy Range: $4360 – $4370
- Targets: $4460 $4490 $4510
- Stop Loss: As per risk management
- Buy Silver July Futures
- Buy Range: $68.750 – $68.950
- Targets: $72 $73 $74
- Stop Loss: As per risk management
Conclusion:
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The strong US jobs report has created significant volatility across precious metals and currency markets.
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However, after the recent sharp correction, traders may watch for signs of profit booking in short positions and a potential rebound from lower levels.
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Volatility is expected to remain elevated, making disciplined risk management and position sizing essential.
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Traders should closely monitor upcoming economic data and market sentiment for confirmation of the next major move.
