It was a slow week for the gold as the popular commodity price continued to drop. But on Friday, the yellow gold ended at the positive note with $ 1,190. The reason behind the slow growth was the strong dollar.
Let’s look at the top five factors that will affect the gold prices in USA in upcoming week .
Trump immigration policy
It was the hottest news of the week. The Trump policies might be friendly for the stock market but it’s not favorable for the gold market. He banned seven country immigrants, which are mostly Muslims . This decision was criticized by most of the analysts. Even some of the popular Americans were against the decision of the Trump.This step will create political uncertainty and uncertainty is very good for the gold market. The investors will be eyeing more anxiously on the upcoming policies on Donald Trump.
20% Tax on the Mexican goods!
Other than the ban on immigrants of the seven countries, Trump also announced to construct a wall at the Mexican border. Mexican President in his speech, criticized this decision from trump and further announced the Mexican government will not provide a fund for the construction of the wall.
How will it affect the gold prices? Mr. Trump declared the American Government will impose 20% tax on import of the Mexican Goods. This decision will strengthen the dollar as more tax will be collected by the American Government. Gold prices in USA will be negatively affected after improvement in the value of US dollar .
Fed will announce its interest policy on Wednesday.
The investors are keenly looking at the upcoming monetary policy of the Fed next week. Most of the analysts are not predicting any change in the interest rate. However, the investors also took note of US. Bureau of Economic Analysis figures that said, the gross domestic product grew only at the rate of 1.9%. The expectation was 2.2%.A decent increase in the interest rate will negatively affect the gold prices in USA.
USA natural Gas
After gold and copper, the natural gas is also a popular and attractive commodity to invest. Like copper, it is also a cheap investment. Currently, it is traded at $3.385. The prices are stable in the last month ranging from $ 3.5 to $3.8.
According to the most recent news, the natural gas storage rose to 4% in this week. The storage capacity currently stands at 2.798 trillion cubic feet. The demand will decrease after the winters.It’s an attractive commodity for the investors with less investment.The investment in natural gas can affect the gold prices in USA.
Decrease in prices but still good news!
The yellow metal can’t be out of the market no matter what the circumstances are. The prices are not favorable and investors are uncertain about the future as well.What’s the positive factor in the low price? The low price will increase the demand for the gold. Yet again, a golden time for India and China to build its reserves! So, investors don’t worry about the prices, it’s time to build your reserves for the future.The reserve building by Asian giants can increase the gold prices in USA.by