Gold is one of the most favorite investment options for the investors. However,nowadays gold is passing through a bad patch due to numerous reasons.Gold prices in USA and Gold prices in Pakistan are affected by Political uncertainty,US economy and falling GBP .These factors have created numerous opportunities for the gold investors in last week. Gold prices in USA started the week at $ 1257/ounce and ended the week at $ 1268/ounce.Gold prices in Pakistan started the week at Rs 49900/tola and ended the week at Rs 49950/ounce.Following are the factors to consider while studying the fluctuation in the gold prices in USA and Gold prices in Pakistan.
US economic data and Gold prices in USA
The Initial Jobless claims calculates the number of people who applied for unemployment insurance for the first time during the past week. The better than expected US job less claims data has really helped the US dolalr to regain its value in the market.The initial jobless claims data has also negatively affected the gold prices in USA and gold prices in Pakistan.
Market analysts are expecting a very positive week for the gold market. Political instability and interest rate hikes expectations are two most important factors affecting the gold prices in USA and Gold prices sin Pakistan.Federal Reserve Governor Lael Brainard is quite optimistic about the interest rate hike in the month of June. However,he also thinks that slow inflation can delay the plan of future rate hikes. es.
Federal open market committee members like Brainard believes that strong US labor market and strong GDP growth performance are two most important factors forcing Fed to increase the federal reserve rates.
Political uncertainty is helping the long term outlook of the gold market.The recent polls have showed that conservatives have very good lead over the its rival parties.This poll has increased the political uncertainty and market has seen a big drop in the value of GBP. Therefore,this uncertainty has increased the demand of safe haven assets like gold.So this uncertainty will continue affecting the gold market in upcoming days.
So,short run investors can improve their returns by selling their investments through using day trading strategies.Long run investors can wait for the upcoming US economic data or more uncertain political events.As,these events will certainly increase demand for the safe haven assets like Gold.