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Gold reaction to employment data and geopolitical events

The June US Nonfarm Payrolls (NFP) data showed an increase of 206,000 jobs, exceeding expectations.

Political uncertainty and the People's Bank of China's pause in gold purchases influence gold market dynamics.

Recent technical developments in the gold market, including breaking the triangle formation and subsequent rally, indicate the potential for higher prices.

Despite a bullish outlook, further consolidation is possible before a significant surge.

The recent US Nonfarm Payrolls (NFP) data revealed a rise of 206,000 jobs in June, surpassing the market expectation of 190,000, despite a downward revision from 272,000 to 218,000 for May. The unemployment rate increased to 4.1% and the wage inflation declined to 3.9% year-over-year. These mixed employment signals have increased the likelihood of a rate cut by the Federal Reserve in September. Additionally, political developments in France, where the left-wing New Popular Front led by Jean-Luc Mélenchon is poised to win a significant number of seats, add to the global economic uncertainty. Meanwhile, the People's Bank of China (PBoC) has paused its gold purchasing program, potentially waiting for a further price pullback. These factors collectively influence gold prices, providing a complex backdrop where the prospect of lower interest rates, political uncertainty, and central bank purchasing strategies are likely to drive market dynamics and investor behaviour in the coming months.

Bullish Trends in Gold Prices

The announcement of the NFP data has dropped the US Dollar Index and boosted gold prices. Since the gold market broke the triangle formation on Wednesday and formed an inside candle on Thursday, the break above Thursday's high on Friday initiated a strong rally, closing the price at higher levels. The red line was the first resistance of this breakout where the gold closed the last week. A clear break above this level may initiate another surge higher. The breakout of the triangle suggests higher prices, but the risk environment remains, as June was a correction month. It looks like the price is preparing for higher levels, but the possibility of consolidation before the surge cannot be ignored.

Bottom line

In conclusion, the increase in US employment, despite mixed signals in wage inflation and unemployment, has increased the likelihood of a Federal Reserve rate cut, boosting gold prices while weakening the US Dollar Index. Political uncertainties in France and the pause in gold purchases by the People's Bank of China further contribute to the complex economic landscape, indicating potential volatility ahead. The gold market's recent technical developments, including breaking the triangle formation and the subsequent rally, suggest readiness for higher prices. However, the possibility of consolidation before another significant surge remains, necessitating careful observation by investors as the market navigates these multifaceted influences.

ChatGPT: Explained to Kids(How ChatGPT works)
Chat means chat, and GPT is the acronym for Gene Rate Pre trained Transformer. Genrative means generation, and its function is to create or produce something new; Pre trained refers to a model of artificial intelligence that is learned from a large amount of textual materials, while Transformer refers to a model of artificial intelligence. Don't worry about T, just focus on the words G and P. We mainly use its Generative function to generate various types of content; But we need to know why it can produce various types of content, and the reason lies in P. Only by learning a large amount of content can we proceed with reproduction. And this kind of learning actually has limitations, which is very natural. For example, if you have learned a lot of knowledge since childhood, can you guarantee that your answer to a question is completely correct? Almost impossible, firstly due to the limitations of knowledge, ChatGPT is no exception, as it is impossible to master all knowledge; The second is the accuracy of knowledge, how to ensure that all knowledge is accurate and error free; The third aspect is the complexity of knowledge, where the same concept is manifested differently in different contexts, making it difficult for even humans to grasp it perfectly, let alone AI. So when we use ChatGPT, we also need to monitor the accuracy of the output content of ChatGPT. It is likely not a problem, but if you want to use it on critical issues, you will need to manually review it again. And now ChatGPT has actually been upgraded twice, one is GPT4 with more accurate answering ability, and the other is the recent GPT Turbo. The current ChatGPT is a large model called multimodality, which differs from the first generation in that it can not only receive and output text, but also other types of input, such as images, documents, videos, etc. The output is also more diverse. In addition to text, it can also output images or files, and so on.
How the iPhone 16 With AI Could Send Apple's Market Value to $4T
Apple could be on track to reach a $4 trillion market capitalization with the artificial intelligence (AI) iPhone 16 upgrade cycle coming, Wedbush analysts said. The analysts said the iPhone 16 supercharged with AI could bring a "golden upgrade cycle" for Apple. Apple's recently announced iOS 18 with Apple Intelligence and OpenAI partnership are also expected to create monetization opportunities and increase share value. Apple (AAPL) could be on the path to a $4 trillion market capitalization as an iPhone upgrade cycle approaches, driven by the iPhone 16 supercharged with artificial intelligence (AI) capabilities, according to Wedbush analysts. 1 Apple's recently announced iOS 18 with Apple Intelligence and OpenAI partnership are also expected to create monetization opportunities and increase share value. AI iPhone 16 Upgrade Cycle Coming Soon Wedbush analyst said that an AI iPhone 16 could bring "a golden upgrade cycle for Cupertino looking ahead with pent-up demand building globally." "The Street is now starting to slowly recognize that with Apple Intelligence on the doorstep in essence Cupertino will be the gatekeepers of the consumer AI Revolution," they said, with 2.2 billion iOS devices globally and 1.5 billion iPhones. Wedbush suggested a "consumer AI tidal wave" could start with the iPhone 16 in mid-September, adding that estimates indicate 270 million iPhones users have not upgraded in over four years. Recovery in China To Support Upgrade Cycle The analysts indicated that iPhone supply stabilization in Asia is also "a very good sign heading into a monumental iPhone 16 upgrade cycle." Wedbush's projections come amid ongoing concerns for the iPhone maker in the China region amid increased competition, though there have been recent signs of improving shipments. They projected that June "will be the last negative growth quarter for China with a growth turnaround beginning in the September quarter," when the iPhone 16 is expected to be released. AI and iOS 18 Could Also Boost Share Value Apple unveiled iOS 18 supercharged by Apple Intelligence and an AI partnership with OpenAI at its developers' conference in June. Wedbush analysts said the partnership with the Chat-GPT maker "creates the highway for developers around the globe to focus on iOS 18 and this in turn will create a myriad of monetization opportunities for Cook & Co. over the coming years." The analysts estimated that "this could result in incremental Services high margin growth annually of $10 billion for Apple" driven by hardware and software. They added they believe "AI technology being introduced into the Apple ecosystem will bring monetization opportunities on both the services as well as iPhone/hardware front and adds $30 to $40 per share." Apple shares were little changed in early trading Monday, though they have gained more than 17% since the start of the year. Do you have a news tip for Investopedia reporters? Please email us at tips@investopedia.com SPONSORED Trade on the Go. Anywhere, Anytime One of the world's largest crypto-asset exchanges is ready for you. Enjoy competitive fees and dedicated customer support while trading securely. You'll also have access to Binance tools that make it easier than ever to view your trade history, manage auto-investments, view price charts, and make conversions with zero fees. Make an account for free and join millions of traders and investors on the global crypto market.
World's deepest diving pool opens in Poland, 45.5 meters deep
The world's deepest diving pool, Deepspot, opened this weekend near the Polish capital Warsaw. The 45.5-meter pool contains artificial underwater caves, Mayan ruins and a small shipwreck for scuba divers and free divers to explore. Deepspot can hold 8,000 cubic meters of water, more than 20 times the capacity of a normal 25-meter swimming pool. Unlike ordinary swimming pools, Deepspot can still open despite Poland's COVID-19 epidemic prevention restrictions because it is a training center that provides courses. The operator also plans to open a hotel where guests can observe divers at a depth of 5 meters from their rooms. "This is the deepest diving pool in the world," Michael Braszczynski, 47, Deepspot's director and a diving enthusiast, told AFP at the opening yesterday. The current Guinness World Record holder is a 42-meter-deep pool in Montegrotto Terme, Italy. The 50-meter-deep Blue Abyss pool in the UK is scheduled to open in 2021. On the first day of Deepspot's opening, about a dozen people visited, including eight experienced divers who wanted to pass the instructor exam. "There are no spectacular fish or coral reefs here, so it can't replace the ocean, but it is certainly a good place to learn and train safe open water diving," said 39-year-old diving instructor Przemyslaw Kacprzak. "And it's fun! It's like a kindergarten for divers."
Israeli strike kills 16 at Gaza school, military says it targeted gunmen
CAIRO/GAZA, July 6 (Reuters) - At least 16 people were killed in an Israeli strike on a school sheltering displaced Palestinian families in central Gaza on Saturday, the Palestinian health ministry said, in an attack Israel said had targeted militants. The health ministry said the attack on the school in Al-Nuseirat killed at least 16 people and wounded more than 50. The Israeli military said it took precautions to minimize risk to civilians before it targeted the gunmen who were using the area as a hideout to plan and carry out attacks against soldiers. Hamas denied its fighters were there. At the scene, Ayman al-Atouneh said he saw children among the dead. "We came here running to see the targeted area, we saw bodies of children, in pieces, this is a playground, there was a trampoline here, there were swing-sets, and vendors," he said. Mahmoud Basal, spokesman of the Gaza Civil Emergency Service, said in a statement that the number of dead could rise because many of the wounded were in critical condition. The attack meant no place in the enclave was safe for families who leave their houses to seek shelters, he said. Al-Nuseirat, one of Gaza Strip's eight historic refugee camps, was the site of stepped-up Israeli bombardment on Saturday. An air strike earlier on a house in the camp killed at least 10 people and wounded many others, according to medics. In its daily update of people killed in the nearly nine-month-old war, the Gaza health ministry said Israeli military strikes across the enclave killed at least 29 Palestinians in the past 24 hours and wounded 100 others.
United Airlines Boeing 757 loses tire during takeoff
United Airlines confirmed that a tire fell off a Boeing 757 passenger plane when it took off from Los Angeles International Airport in the early morning of July 8, local time. It is reported that there has been no report of any material damage or casualties in this accident. United Airlines said in a statement that the aircraft tire has been found and the investigation is ongoing. There were 174 passengers and 7 crew members on the flight involved. The flight left Los Angeles International Airport at around 7:15 on July 8 and flew to Denver. Unlike the aircraft tire falling incident on a United Airlines flight in March, the pilot of this flight continued the journey to Denver and landed smoothly there.