What makes gold prices go up and down??

What makes gold prices go up and down??


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.

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