What makes gold prices go up and down??
06.07.2014
The market and the
investors have closely watched the release of important economic data due on Thursday
and Friday. Especially the ECB decisions and the Nonfarm jobs report. So the market has experienced a high
volatility which affected the Gold prices to witness a swing trading between
gains and losses.
Gold
prices going up on ECB interest rates decision
:
On Thursday, during his
Press Conference, Mario Draghi has claimed that the interest rates will remain
at lower levels for long period of time. In addition, the ECB implemented news
stimulus measures to boost the slow economy in the Euro area. And this action
has increased the yellow metal demand as a safe haven asset and a hedge
investment against inflation.
Gold
prices going down on positive US
Jobs data:
However, yesterday the
Gold declined to offset its gains reached on Thursday, to resume its bearish
trend after the release of the release of positive U.S. labor sector data during the
month of May. Indeed, US Nonfarm Payrolls report and the US labor market has added 217.000 new
jobs in May, while the unemployment rate remained unchanged around its lowest
levels in nearly 5 years.
The excellent performance of the U.S. Dollar Index amid improved economic indicators which confirm that the world's largest economy is going on the right way toward recovery.
As a result, the Gold
declined from one-week high to close this week trading session around $1250 per
ounce, while the equities advanced , diminishing
demand for the precious metal as an alternative investment.
