Gold Daily Fundamental Analysis Gold prices eased on Thursday, where rising risk aversion pressured commodities prices to drop including gold prices, where gold prices rose earlier on Thursday above $1540 an ounce, but dropped ahead of Friday’s jobs report, as investors are still somewhat concerned that the labor market could be weakening. All focus in financial markets is towards Friday’s infamous jobs report, which is expected to show employers in the United States added 170,000 jobs in May, and some investors are even concerned added jobs will be weaker after the ADP employment report showed U.S. private employers added 38,000 jobs only, and a weak jobs report could spark demand for safe havens including gold, which will push prices to rise. Friday June 03: Germany’s final PMI Services for May is due at 07:55 GMT and expected unrevised at 54.9. The euro area’s final PMI Services for May is due at 08:00 GMT and expected unrevised at 55.4 in line with the Composite PMI which is also projected steady at 55.4. The United States of America will release the infamous jobs report on Friday that the market is awaiting for the entire week. The non-farm payrolls at 12:30 GMT is expected to show that the U.S. economy added 170 thousand jobs during the month of May compared with the previous 244 thousand jobs. Unemployment rate during the month of May is expected to retreat to 8.9% from the previous 9.0%, while the yearly average hourly earnings index is expected to rise by 1.9%. The U.S. economy will end the week with the ISM non-manufacturing composite for May at 14:00 GMT, where it's expected to rise to 54.5 from the previous reading of 52.8. Crude Oil Daily Fundamental Analysis Crude oil prices fell on Thursday, following the EIA reportwhich showed crude oil inventories increased by 2.9 million barrels last week in the United States, and accordingly, investors averted oil, not to mention that the US economy released gloomy data earlier today, as the jobless claims climbed higher than forecasted, while the US factory orders plunged in April, and therefore investors shunned risky assets and headed for safety, which bolstered the U.S. dollar against oil. The EIA report for crude oil inventories was released earlier on Thursday, as the EIA report showed that the crude oil inventories increased last week, meanwhile, pessimism continues to dominate investors, as they are not optimistic about the US Jobs report which will be released tomorrow covering the month of May, so we should expect that the crude oil prices to decrease tomorrow accordingly. Friday June 03: We do not have any major fundamentals from the euro area on Friday while the US economy is due to release its infamous Jobs report for the month of May at 12:30 GMT, where the change in nonfarm payrolls is expected to show that the US economy added 190 thousand jobs in May, down from the previous 244 thousand jobs added back in April, while the unemployment rate is expected to drop from 9.0 percent to 8.9 percent. At 14:00 GMT, U.S economy will issue its ISM Non-Manufacturing Composite Index for the month of May, where it is expected to rise to 54.0, compared with the prior estimate of 52.8. Natural Gas Daily Fundamental Analysis Natural gas prices rose on Thursday from a 4-month high, following the EIA report for natural gas inventories, which showed that natural gas stockpiles plunged last week below the forecasted estimates. The US EIA Natural Gas Storage Change for May 27 plunged to 83 BCF from 105 BCF, while that the market projected a reading of 93 BCF, moreover, we should expect natural gas prices to extend their gains, since warmer weather conditions are expected to increase demand on power-plant fuel, which will support natural gas prices over the short term.

Source