Gold News: US Job Data and What Country to Watch
Gold News
In the latest gold news: As of July 11, 2016 at 2:30 AM EST, the price of gold was selling at $1366.37 per ounce. Starting in anticipation of and continuing following “Brexit,” gold has been rallying. Gold even topped its two year high on Friday June 24 at $1358.54 per ounce and since then surpassed that high. On June 24, Britain announced that Britain voted to leave the EU and there was a bullish effect on gold. The bullion rose 4.8%, the highest rise in one day since January 2009, even though the pound depreciated markedly.
On Friday July 8, the June US employment reports were released. 287,000 jobs were added to the US economy, as opposed to the 175,000 jobs were expected to be added. Immediately following the release of this information, gold prices dropped due to the stronger than expected job growth, but quickly rallied later in the day due to the quite potent effects of Brexit that are still being felt.
However, despite the strong employment report, the Fed is not expected to raise interest rates. This is due to the economic turmoil caused by Brexit that is still being felt around the world. Until the economy is adjusted, it is expected that there won’t be any interest rate hikes. Immediately after Brexit, it was common thought that there wouldn’t be interest rate hikes until December. Now it appears that it may be even later than that.
A country with a gold market to watch: India. India was the world’s largest gold consumer until 2013 when China purchased 92.4 more tonnes of gold than India. India’s gold consumption has slowed because the government has encouraged selling of gold rather than hoarding. Indian gold consumption is still expected to pick up because of the extremely positive outlook in gold investment right now.
On June 21, I Know First’s algorithm accurately predicted that gold prices would increase and stocks would have positive returns. This can be seen in “Gold Forecast Based on Algorithmic Trading: Returns Up to 13.99% in 14 Days” I Know First’s average percent change came out to 8.05%.
