US Market Review 7th June 2021

by Elina Nikolova

Platinum Futures peaked for this year on the 16th of February at price 1265.00 . The price after that point moved to a higher bottom at 1109.70 on 5th of March. Platinum has been trading in a sideways fashion since March reaching up to the 61.8% Fibonacci retracement level of the last significant move, but never closed above this 1258.50 level. The price action also penetrated below the uptrend line - formed from the 2nd of November 2020 – on the 19th of May. The price is now trading below the 1200 level at price 1160.00 . The RSI is trending below the mid-50 level in bearish territory at 39 but its still above the oversold level of 30.
For the bulls, important resistance points exist at 1200.00 38.2 Fibonacci retracement level that coincides with the 100-Day Moving Average, also at 1258.50 61.8% Fibonacci retracement level, and finally at the 1279.18 last top of 10th of May 2021.
For the bears, support levels exist at 1110.00 level where the price bottomed on March 5th, and also at 1055.00 level that is formed from the bottom of January 28th .

• A really quiet day on the reports front from the US and Canada. The only news expected is the Consumer Credit m/m.

• U.S. stocks climbed on Friday as the key May jobs report showed solid gains, boosting confidence in the economic comeback.
The S&P 500 rose about 0.9% to 4,229.89, sitting less than 0.2% from its all-time high reached last month. The Dow Jones Industrial Average gained 179.35 points to 34,756.39. The Nasdaq Composite outperformed with a nearly 1.5% rally to 13,814.49.

• U.S. employers boosted hiring in May as the easing pandemic, helped by vaccinations, pulled more people back into the labor force, offering assurance that the economy's recovery from the COVID-19 recession remained on track.
Nonfarm payrolls increased by 559,000 jobs last month, the Labor Department said on Friday. Data for April was revised slightly higher to show payrolls rising by 278,000 jobs instead of 266,000 as previously reported.

• Meanwhile, Unemployment Rate report indicated that Unemployment Rate declined from 6.1% in April to 5.8% in May, but it remains to be seen whether traders will pay any attention to this report as they remain focused on Non-Farm Payrolls data.

The gold bull could have been asking that for the umpteenth time as the yellow metal couldn’t muster a second straight weekly close above $1,900 on Friday, despite incessant noise across markets about price pressures.

A mixed U.S. jobs picture did help activate gold’s other quality — safe-haven — helping it crawl out of the near mid-$1,800 levels it tumbled to on Thursday.

• At 19:00 (GMT) US Consumer Credit m/m will be announced. This indicator measures Change in the total value of outstanding consumer credit that requires installment payments. It's correlated with consumer spending and confidence - rising debt levels are a sign that lenders feel comfortable issuing loans, and that consumers are confident in their financial position and eager to spend money.

US Indices Friday:

• Dow Jones +0.52%
• S&P 500 +0.88%
• Nasdaq +1.47%

Sources: Investing.com, forexfactory.com,reuters.com