9 March 2013 : Gold Investing Updates

The announcement of an unexpected jump in U.S. employment figures for February caused the world equity market to rally and also witness the strengthening of the US dollar on Friday. Most investor already holding gold would not welcome this announcement as there could be further drop in the gold price.

Key unfavorable data for gold investors:

• The Dow Jones industrial average posted its fourth consecutive intraday and closing record highs, while European shares and a gauge of global equity markets rose to their highest levels in more than 4-1/2 years.
• The dollar touched a 3-1/2-year high against the yen and a three-month peak against the euro
• U.S. unemployment rate fell to a four-year low of 7.7 percent last month.
• a 1.2 percent gain in U.S. wholesale inventories in January to $504.4 billion - the fastest pace of growth since December 2011

Favorable data for gold investors:

• Job market continues to move sideways at a frustratingly slow trend for the Fed. The length of time people are unemployed deteriorated, the number of discouraged workers increased, voluntary job labor fell and the labor force participation rate declined.
• This is report is not going to inspire any kind of change in monetary policy, it is certainly not going to inspire any kind of discussion to end Quarterly Easing earlier than expected.

Summary

Expecting a slight drop in gold price come Monday. Will continue to post updates when I get any.

Cheers and Happy Investing!

If you like this post, reward me with a tip by:
1. Sharing this article with your friends on your Facebook!
2. Like my Facebook Page