July, the current expectations are that 218,000 jobs were added. If the report shows a higher figure, it could steer investors towards equities and thus may pull down precious metals.

Source: FOMC and CME

As you can see, the past couple of non-farm payroll reports, which were better than expected, led to a decline in gold prices.

READ MORE: 10 Questions to Ask Before You Buy a Stock

The non-farm payroll and GDP reports are tied with the latest FOMC meeting, in which the Fed didn't surprise the market and tapered its asset purchase program by another $10 billion. But the recovery in the labor and GDP could push FOMC members a bit closer towards taking a hawkish move such as announcing a rate hike. Such a decision could reduce the fear of inflation and thus push investors away from the yellow metal. 

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

READ MORE: Here's What It Looks Like Inside Tesla's Massive Factory

If you liked this article you might like

Gold, Google, SEC Hack - 5 Things You Must Know Before the Market Opens Thursday

Here's the Hottest New Way to Get Rich With Gold

How to Invest in Unstoppable Gold Prices

Novice Trade: Gold ETF

Will Gold Make You 25,000% Richer Like Bitcoin?