Gold News: Gold on The Rise As Uncertainty In The Market Advances

Gold News

In the latest gold news: U.S. Gold Futures were up by 0.3% at $1,331, while spot gold was up 0.1% at $1326.78 an ounce.

Gold, which had a historic inverse relationship with the “Market”, generally rises as higher levels of uncertainty and negative outlooks rise. The Fed had recently announced that a rate hike would likely occur, all else equal, as they believe employment levels are reaching the fullest level benchmarked. A rate hike would thus dampen gold demand (in turn prices), as they fight to compete with yield-bearing assets (i.e. bonds) since they do not offer any interest type payment.

Gold News

Therefore, with new economic job data reports revealing lower than expected additional jobs in the U.S. economy with only 150,000 jobs added. Expectations had been at 180,000, therefore, causing unemployment to remain at 4.9%, and not lowering to 4.8%. This had immediately caused gold prices to rise as uncertainty increased for whether it would damper the possibility for a rate hike in September. Although increasing interest rate levels for the U.S. would likely hurt stock price levels, it would, more importantly, show the U.S. has a strengthening economy.

In general, gold has been the rise throughout this past year, contrary to analysts expectations, as many global events had increased volatility in the market, i.e. Brexit.

Although many analysts have been wary of gold and other metal commodities, the I Know First algorithm has seen impressive returns with precious metals, and has been able to successfully provide investors high returns. On August 17th, 2016, I Know First had published a forecast showing a high 3 month return for precious metals at almost 40%.


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