US traders who have just returned from the Independence Day holiday will face their toughest test of the week: the June non-farm payroll report, which is expected to show a cooling labor market in the US. On the product side, the revenue of 10-30 billion yuan products was 401/1288/60 million yuan respectively, with an overall sales volume of 18,000 kiloliters in 2023, up 28.10% year-on-year and showing significant growth.

Economists' common predictions show that employment growth in the United States slowed in May, with the non-farm payroll expected to increase by 0.19 million. However, the unemployment rate is expected to remain at the level of 4% , partly due to the expected decline in employment participation rate last month. Given the market's concern about inflationary pressures, the key detail in labor market reports is the average hourly wage data. After jumping unexpectedly to 4.1% last month, the data is expected to fall back to 3.9%.

If the data meet the expectations, it will undoubtedly enhance the reason for the Fed to cut interest rates, thus benefiting precious metals. But Christopher Lewis, a market analyst at FX Empire, said that even if the prices of gold and silver fall after today's non-farm payroll report is released, traders should view it as a buying opportunity.

"The gold market was very calm on Thursday, but given that it was the Independence Day in the United States, it was not surprising that the trading volume in the futures market itself was very limited," Lewis wrote. "Nevertheless, the charts show that gold is on the rise."

Lewis pointed out that Friday's non-farm payroll report would have a significant impact on the future trend of gold prices. "Because of this, frankly, I'm hoping to see some kind of substantial pullback that I can accept," he said. "In the foreseeable future, I still believe that this upward trend will continue, because frankly, there are too many factors that are advantageous to gold."

He explained," First of all, of course, the major central banks, Russia, China, India, and many other central banks are buying gold. And western countries, especially the United States, are borrowing a lot of money, which will ultimately lead to the devaluation of the dollar. Therefore, in the long run, this will indeed push up the price of gold. Of course, there are many geopolitical risks."

"The fourth reason is that gold is in an upward trend," he further added.

Lewis said the gold market had been "eliminating some bubbles" for the past few months, but he believed that "the price of gold will eventually reach $2,400 and may then break through that level."

"In my opinion, a pullback to the 50-day moving average, or even better to the level of $2,300, would be a good entry point. I am not interested in shorting gold, and currently, even if the gold price falls below that level, it only provides me with lower entry costs," he said.

As for silver, Lewis pointed out that he would pay attention to its performance after the release of non-farm payroll data, and like gold, he hoped that silver would pull back.

"Silver may fall from now on, but I think it will eventually become a buying opportunity. The $30 level will be the first support level, followed by the 50-day moving average, approaching around $29.25," he said.

"Whether silver will continue to fall remains to be seen, but I do believe that the current situation will be completely determined by the dollar and the market's response to employment data," Lewis said. "If the employment data is stronger than expected, this may push up the dollar, which is likely to be beneficial to silver, at least temporarily. But Wall Street is quite convinced that interest rate cuts are coming, especially after Powell's recent speech, so they will continue to try to push up the prices of commodities."

Lewis said it was important to recognize that the dollar would largely determine short-term price movements in silver.

"I don't think there's anything magical about this market other than in terms of how it's priced in dollars. So, we'll just have to wait and see. If silver turns around and falls below $28.50 (which I don't think will happen on Friday), the market may really start to collapse. But I think we're more likely to see silver challenge $32 in the next few weeks than to see such a crash."