Worldwide all gold traders keep an eye on the USA economic data as it has implications on the gold prices and the reasons are as enumerated below:
Economic data includes the following data:
(a) Jobs reports
(b) Wage data
(c) Manufacturing data
(d) Broader-based data such as GDP growth
Why these data are being considered as it influences the Federal Reserve's monetary policy decisions, which can in turn affect gold prices. We have already covered this aspect that how US Fed Policy affect gold prices here. Please remember that a strong economic growth implies that the Fed could make a move to tighten monetary policy, thus impacting the opportunity cost dynamic discussed above. This has been adequately covered in the link of USA Fed policy impacting the gold prices.
As a thumb rule, a stronger USA economy means that it has low unemployment, job growth, manufacturing expansion, and GDP growth in excess of 2% and thus it has a tendency to push gold prices lower.
On the flipside, weaker job growth, rising unemployment, weakening manufacturing data, and subpar GDP growth can create a dovish Fed scenario on interest rates and increase gold prices.
As a trader, you need to understand the factors which are affecting the gold prices worldwide to get a better perspective wrt gold trading. You can get Gold intraday tips for trading at MCX here.
Economic data includes the following data:
(a) Jobs reports
(b) Wage data
(c) Manufacturing data
(d) Broader-based data such as GDP growth
Why these data are being considered as it influences the Federal Reserve's monetary policy decisions, which can in turn affect gold prices. We have already covered this aspect that how US Fed Policy affect gold prices here. Please remember that a strong economic growth implies that the Fed could make a move to tighten monetary policy, thus impacting the opportunity cost dynamic discussed above. This has been adequately covered in the link of USA Fed policy impacting the gold prices.
As a thumb rule, a stronger USA economy means that it has low unemployment, job growth, manufacturing expansion, and GDP growth in excess of 2% and thus it has a tendency to push gold prices lower.
On the flipside, weaker job growth, rising unemployment, weakening manufacturing data, and subpar GDP growth can create a dovish Fed scenario on interest rates and increase gold prices.
As a trader, you need to understand the factors which are affecting the gold prices worldwide to get a better perspective wrt gold trading. You can get Gold intraday tips for trading at MCX here.
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