Brent crude has been hovering at 114 USD per barrel since Wednesday, waiting for the figure on the US ISM index and today’s payrolls. Regarding the ISM of the manufacturing sector sparked a positive surprise but its impact on commodity markets was rather small.
Today, the eye-catcher is the US payrolls report. The consensus is expecting 68K job growth in the US in August. The unemployment rate is expected stable at 9.1%. We put the risk for a weaker than expected report. This might strengthen the case of more Fed stimulus and hence be supportive for commodities prices across the board.
Gold has been trading sideways in past two sessions, waiting especially for today’s release of the US non-farm payrolls report. Today in the morning, the price of the metal surged to 1850 USD per troy ounce (USD/toz) on news that Greek minister of finance will hold a press conference regarding the talks with EU/IMF/ECB inspectors. The fact that the country will miss its budget deficit target this year also bolsters the price of the yellow metal.