Great non-farm payroll report.
Brothers, it exploded, this time the non-farm data is super disappointing, simply a nuclear bomb for gold. The recently released data expected 110,000 new jobs, but the result was a slap in the face, only 73,000, which is directly halved compared to last month, and the market was instantly stunned by the unexpected outcome.
But the more explosive news is still to come. Do you remember the ridiculously high figures from last month and the month before? Last month reported 147,000 new jobs, impressive, right? May had 144,000 new jobs, which was also strong. Now the official data has been drastically revised; last month's data was cut from 147,000 new jobs down to only 14,000. May's figures were slashed from 144,000 new jobs to just 19,000.
What does this mean, brothers? It means that the so-called strong employment data from the past two months was all fake, it was false data. A total of 258,000 jobs were revised down over the two months, which is outrageous, a direct cut to one-tenth of the previous figures, is this how it works?
Now do you understand why everyone praised Powell as hawkish a couple of days ago? It’s because he stated that he would only consider cutting rates if employment severely declines. As a result, the stunning little non-farm report on Wednesday gave the market a false sense of security, making everyone think there would be no rate cuts, reducing the probability of a rate cut in September to 40%.
Today's abysmal real non-farm data, along with the significant downward revision of the previous two months' data, has revealed the truth; the employment market over the past three months has been incredibly poor, utterly terrible, and the market has reacted instantly, with the probability of a September rate cut soaring from 40% to over 75%.
Brothers, I wasn’t I always telling everyone? Emphasizing that the price around $3,280 for gold is a solid floor price, regardless of the fluctuations in between, just listen to me and hold on tight.
As soon as this data came out, Powell was completely put on the spot. If the next employment data is this bad again, what will he say?
Brothers, get ready for takeoff, this wave has truly begun.