The August employment report just released by the US Department of Labor shows that the number of non-farm jobs increased by only 22,000, much lower than the expectation of 75,000.
The unemployment rate is at 4.3%, in line with market forecasts. This report reinforces the view of the "puppet" in US monetary policy, who want to lower interest rates faster.
After the report, the market now expects the US Federal Reserve (FED) to cut a total of three cuts of 0.25 percentage points this year.
December gold contract increased 35.9 USD to 3,641.6 USD/ounce. December delivery silver prices also increased by 0.483 USD to 41.9 USD/ounce.
The US stock index is heading for a positive opening in New York, while global stocks have mixed movements in the last session.
In outside markets, the USD index fell sharply to a five-way low for the week. crude oil futures also fell, trading around $62.75/barrel. The yield on the 10-year US Treasury note is currently at 4.099%, down from before the employment report was released.
In other developments, Canada and the US have agreed to conduct technical negotiations on industry-level tariffs following a meeting with US Secretary of Commerce Howard Lutnick.
The discussions aim to find solutions to reach small deals to help improve Canada's position, according to Canadian Minister of Home Affairs Dominic LeBlanc.
Canada is facing US tariffs on steel, aluminum, cars and wood. On Wednesday, Canadian Prime Minister Mark Carney said he had a very constructive meeting with President Trump and believed the two sides could reach a deal in some of the affected sectors.
US President Donald Trump has also signed a decree implementing a trade agreement with Japan, which imposes a maximum of 15% tariff on most Japanese goods.
The deal includes a commitment that Japan will establish a US investment fund worth $250 billion, while the US will lift some tariffs on aircraft, aircraft components and generics.
The tax exemption for the aviation and auto industries will take effect for seven days, according to this decree. This news has boosted optimism in the Asian market.
Crude oil prices fell last week ahead of the OPEC+ meeting on September 7. Energy analysts said the bloc could see further output increases. The alliance is scheduled to meet online on Sunday to decide on the next steps after restoring 2.5 million barrels/day of previously interrupted supply.
Commerzbank experts Barbara Lambrecht and Carsten Fritsch wrote in a note: If the eight OPEC+ countries agree to increase production again, we believe this will put strong downward pressure on oil prices. After all, the risk of outstanding supply is at a significant level".
Technically, December gold futures speculators currently have a very strong short-term technical advantage. The next upside target for buyers is to close above the solid resistance level of $3,700/ounce. In contrast, the near-term downside target for the bears is to push prices below the key technical support level of $3,500/ounce.
The first resistance level was at 3,650 USD/ounce, then 3,675 USD/ounce. The first support level was $3,600/ounce, followed by Thursday's low of $3,573.7/ounce.
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