Interpretation of gold fundamentals:
Spot gold rose by more than 1% this week and is expected to recover after three weeks. The increase in non-farm payrolls in the United States in May, released on Friday (June 2), far exceeded expectations and the previous value, but the unemployment rate rose significantly and wages fell at an annualized rate. The data had little impact on the outlook for the Fed's June policy meeting.
Recently, a number of Fed officials have come forward to support "skipping" a rate hike at the June 13-14 policy meeting. Market bets on the probability of a rate hike quickly cooled, to about 30 percent from nearly 70 percent earlier this week. The U.S. dollar index is expected to close lower again after three weeks, and is currently down about 0.5%. At the same time, the U.S. Congress passed the debt ceiling agreement, ready for President Biden to sign before the June 5 deadline to avoid a catastrophic default in the United States. It also removes a strong factor supporting the greenback, although political risk in the United States is likely to continue to boost the greenback's appeal.