Will the U.S. employment downturn push up the price of gold?
As we all know, gold is priced in US dollars, so the gold market will naturally be related to the state of the US economy. Recently, due to the poor performance of the U.S. job market, the decline of gold was also limited, prompting the gold price to return to above $2000 / oz. So, will the U.S. employment downturn lead to a new round of rise in gold prices? Today I will explain to you:
1. U.S. employment downturn will largely push up the price of gold
Generally speaking, U.S. employment data is often a big reference indicator of social and economic status. If U.S. employment is low, it also means that the recent U.S. economic development is not optimistic. It is easy to stimulate market risk aversion, and make more investors turn to invest in precious metal risk aversion products such as spot gold and silver. Under the influx of a large number of funds in the market, the price of gold will also rise, with a strong unilateral rise in the short term.
2. Are there still some factors for the rise of gold price?
Of course, the employment downturn in the United States is only one of the reasons to stimulate the rise of gold price, and other international factors, such as changes in national and regional political situation, war or economic policy, can also form the reasons for the rise of gold price. For example, the conflict between the United States and Iraq at the beginning of the year and the Sino US trade war also promoted investors' demand for risk aversion, and they would prefer to invest in spot gold to prevent inflation during the international political turmoil. When we analyze the trend of gold price, we must pay attention to the comprehensive analysis of the market. We must not separate individual events.
On the whole, will the low employment in the United States lead to the rise of gold price? From the current point of view, the poor performance of the U.S. economic data really means that the social and economic recovery of the United States is not satisfactory under the influence of the epidemic, and to a certain extent, it is also the driving force for the gold price to return to a high level. However, when we conduct market analysis, we must pay attention to comprehensive analysis of various international information, so as to find out the right investment direction and improve the profit probability.
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