The U.S. Labor Department reported mixed employment data in May despite the unemployment rate falling to a 16-year low of 4.3 percent. Nonfarm payrolls increased by 138,000 in May, well short of the 185,000 expected by economists, casting a doubt on U.S. economic outlook no matter whether the Federal Reserve would increase interest rate this year after the report.
Spot gold was up 1.1 percent at $1,279.58 per ounce, shackling off the constraint of the trading range in the past two weeks and opening up the potential for more gains. Investors are not recommended to short gold at current level due to high risks.
On stop-loss, we believe that market bears may consider stopping loss if their preset target is hit, unless big surprise takes place. But investors shall not count on this as the likelihood is low.
Silver rallied 1.4 percent, making effective breakthrough despite of the pressure of selloff in the four-hour chart. On technical front, we maintain our bullish view on silver in the long run. Investors are recommended to keep their automatic investment plan, and avoid short trading in the near term. There still exists some potentials for long trading. Investors may long the metal according to their risk appetite due to the terrorist attack and incoming election in UK.

 
Dealing Room, ICBC Beijing Branch
Zhao Yifei

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