Gold News: Effects of US Job Data and Turkey’s Failed Coup
Gold News
In the latest gold news: As of July 18, 2016, at 2:33 AM EST, the price of gold was selling at $1328.68 per ounce. This is a slight dip from $1366.37 per ounce that gold was selling at this time last week. Starting in anticipation of and continuing following “Brexit,” gold had been rallying until this past week. It even topped its two-year high on Friday, June 24, at $1358.54 per ounce and has 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 Bureau of Labor Statistics released the June US employment reports. There was an addition of 287,000 jobs to the US economy, significantly more than the expected 175,000 jobs. Immediately following the release of this information, gold prices dropped due to the stronger than expected job growth. They quickly rallied later in the day due to the quite potent effects of Brexit still affecting the economy. However, Brexit may not be enough to keep the gold prices high. Because the US economy is showing improvement, the Fed may raise interest rates later in the year.
China has been buying large quantities of gold from Hong Kong and in the first half of 2016 worth a total of 45.8 billion yuan. Traders expect that China will continue to buy large amounts of gold in the second half of 2016 due to the rising gold prices following Brexit and the fact the value of the yuan is falling.
On July 15-16, a faction of the Turkish Armed Forces led an attempted coup to oust President Erdogan from office. Following the failed coup, gold fell 1% as the demand for safe-haven assets decreased. Prices also fell because the coup attempt did not impede risk sentiments.
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% in this 2 week period.