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Top Five factors affecting Gold Price in the USA


Gold continues to shine after the Christmas and the New Year holidays. A positive start for the gold investors in the USA market! According to the recent report, the gold price ended at $ 1,173.40 an ounce, reaching the highest settlement in five weeks.

What are the top five factors affecting gold prices in this week?

How will the job report affect the gold prices

According to the recent news, the labor department of the USA reported 156,000 jobs were added in the month of the December. This is the 75 record straight months of job growth under Obama administration. The current employment rate is 4.7% in the USA.

How will it affect the Gold?

Strong employment rates are the signal of the stable economic growth.  When the economy will be healthy, the investors will diversify their investments other than gold.  As a result, the demand for the gold will decrease and it will affect its prices.

 Yield on the Treasury Bills rises

After the USA solid job data, the US treasury bills showed a rise in the yield. The investors were focusing on the average hourly earnings which rose by 10% to .4. The wage pressure number can urge the Federal Reserve to increase the interest rate well before the first quarter.

The USA 10- year bond yield changed from 1.827% to 2.348% in last two months. This positive change will urge the yellow metal investors to diverse their stocks in USA treasury bills, which continue to show upward trend after the Fed announcement in the interest rate.

 Lawrence Summers Criticize the Trump Economic Plan.

Some uncertainty is already prevailing in the USA market after the selection of the Donald trump. Mr. Trump will be in the president office on 20 January 2017. The whole world, especially the investors are expecting a lot of changes in the gold market after 20th Jan 2017.

Lawrence Summers, who is the former US Treasury Secretary, criticize the Donald trump economic plans. According to his view, Donald trump plans regarding private investment and regulation of taxes will destabilize the economy. This analysis can create bit uncertainty for the investors to target the gold market in the USA.

How do stock markets affect the gold price?

USA stock market affects any stock market in the world. USA stock market is a paradise for the corporate investors.  Currently, the USA stock is on the move, all the major index like S&P 500, Nasdaq composite Index closed at higher rates at Friday 6 Jan 2017.

But, how will it affect the gold prices? When the stock market will perform positively, the investors will invest more in stocks rather than gold. But, if the stock is not up to expectations, the investors will turn to the safe investments like gold. Consequently, the gold prices will rise.

About Emaad Qureshi