Core Viewpoint - The U.S. economy is experiencing a contraction, increasing the likelihood of interest rate cuts, which may lead to a bullish trend in gold prices by the end of the year [1][6]. Economic Indicators - The Chicago Business Activity Index for June is at its lowest level since January, indicating 19 consecutive months of economic contraction [3]. - The Dallas Fed Business Activity Index has contracted for the fifth consecutive month, contributing to a bearish outlook for the dollar [3]. Federal Reserve Outlook - Federal Reserve officials, including Bostic, anticipate one rate cut this year and three in the following year, suggesting a dovish monetary policy stance [3][6]. - Trump's potential appointment of a new Fed chair has further strengthened expectations for rate cuts next year, supporting the bullish outlook for gold [3][6]. Gold Price Movements - Gold prices opened at $3,272.74 per ounce, dipped to a low of $3,247.77, and then rebounded to a high of $3,309.12, closing at $3,302.85, marking a daily increase of $30.11 or 0.92% [1]. - The price is expected to test the $3,400 level, with the 60-day moving average acting as a support level [1][10]. Market Sentiment - The market is currently cautious, awaiting key employment data, which is expected to show rising unemployment and decreasing job numbers, generally favorable for gold prices [3][5]. - Despite some bearish indicators, the overall sentiment remains bullish for gold due to anticipated economic conditions and Fed policy [6][8]. Technical Analysis - Gold has maintained a bullish outlook as it remains above the 5-month moving average, although a drop below this level could signal a potential decline to around $3,000 [8]. - The monthly chart indicates a potential top formation, but the prevailing trend remains upward unless significant support levels are breached [8][10].

Group 1 - Former President Biden has been diagnosed with malignant prostate cancer, with cancer cells having spread to his bones [1] - The diagnosis followed the discovery of a prostate nodule due to worsening urinary symptoms, with the diagnosis made on May 16 [1] - Despite being a more aggressive form of cancer, it appears to be hormone-sensitive, allowing for effective treatment options [1] Group 2 - Former President Trump expressed his condolences regarding Biden's health diagnosis and wished him a speedy recovery [4] - Trump has taken actions against Biden's previous policies, including revoking Biden's security clearance and stopping the provision of daily intelligence briefings [5] - Economic data released by the U.S. Commerce Department indicated a 0.3% contraction in GDP for Q1 2025, marking the worst quarterly performance since 2022 [5][6]

Group 1 - The ADP employment report for April shows the slowest growth in nine months, indicating potential economic weakness [1] - The Nasdaq index dropped by 2.07% at the start of trading, while the S&P 500 and Dow Jones indices fell by 1.35% and 0.71% respectively [1] - The Bloomberg index of seven major U.S. tech stocks declined by 2.7% [1] Group 2 - Advanced Micro Devices (AMD) issued a disappointing earnings forecast, leading to a drop of over 19% in its stock price [1] - This decline in AMD's stock negatively impacted Nvidia, which fell by over 4%, and Dell Technologies, which dropped by over 7% [1] - Social media company Snap saw its stock price decrease by over 14% after retracting its revenue guidance for the second quarter [1] Group 3 - Starbucks experienced an 11% decline in its stock price, as the company's global sales for the second quarter fell more than expected [1]