Gold is passing through a very critical phase as we are seeing lots of fluctuations in its price. Gold prices in USA and Gold prices in Pakistan are affected by Political uncertainty,weak US economic and falling GBP .These factors have helped gold investors to multiply their gains in last week. Gold prices in USA started the week at $ 1268/ounce and ended the week at $ 1280/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.
Gold prices in USA have showed a considerable rise after the steep drop in the British Pound. The British pound fell after the poll about the upcoming UK general elections.According to this poll ,ruling Conservatives’ lead has showed a steep decline since mid-July 2016.
This poll has really caused a political uncertainty and political uncertainty is always very good for the gold market. This political uncertainty has really helped gold prices in USA to rise in the international market.
The US non-farm payroll data was below the expectations of the experts and it may hamper the plans of Federal reserve to make more aggressive interest rate increases in upcoming months.The US labor market is losing momentum and this is putting pressure on the value of dollar.
Moreover,this is also putting pressure on the federal reserve to defer its plans to increase the interest rates.Additionally, economic uncertainty is also good for the safe haven assets like gold.So,gold prices in USA have really improved in the international market after the release of the weak US economic data.
Market analysts are expecting a positive sentiment for the gold market in upcoming days.The weak US economic data and political uncertainty are helping gold market to improve its position.
The weak US economic data is also affecting the Fed’s plans to increase interest rates in upcoming months.The weak US economic data is also very good for the safe haven assets like gold as it will help improve gold demand in the international market.
The US job data has really disappointed the investors as it failed to fulfill their expectations. The US job growth was slower than expected as economy failed to create sufficient employment opportunities for the people.
The weak economic conditions are good for the gold market and gold investors. This weak economic data is manifesting a weak economic growth and this situation also increases the demand of the safe haven assets such as gold.Therefore,Gold investors can easily multiply their investment gains through using day trading strategies in the gold market.
Market analysts believe that this data will also put more pressure on the dollar and its yields.It will also make difficult for the federal reserve to increase interest rates in month of June.
Moreover,it is very important for the gold investors to keep an eye on the political events to predict the progress of the gold prices in USA in future weeks.