After a week of gains offset by frequent but minor dips in value, gold futures on Friday began declining in earnest following the release of the Unites States jobs data for the last month (December, 2016). After reaching slightly over $1,180 per troy ounce earlier in the week, gold’s price had slipped back down to $1,177 per ounce by mid-day on Friday, Jan. 6, 2017.
Savvy investors are still optimistic that the price per ounce could increase in the upcoming month, but today’s dip violates the general pattern of gold price tending to increase on the last day of trading each week.
The United States Jobs Report Undermined Gold’s Price Climb
Analysts were expecting less than stellar information in the United States jobs report, which looks at job creation, unemployment, and wage increases. In some ways, they were right. The jobs report showed less job creation and slightly higher unemployment. However, it surprised everyone in one area: Wage growth was the strongest it has been since 2009. Many believe this was a result of the increase of the prime rate by the Federal Reserve. Whatever the cause, employed Americans likely saw minor wage increases that could impact their finances and thus the larger economy in a positive manner.
Gold Likely to Recover Soon
While gold tends to trend in an inverse pattern from stocks and the strength of the United States dollar, chances are solid that it will continue to improve its price despite the economic optimism currently driving investments. Many market analysts predict strong gold trading in the upcoming year.
Others are predicting a massive collapse of the price of gold. Only time will tell which side has the more accurate analysis of where gold is heading. One thing is certain, however: The price of gold per ounce will continue to fluctuate and change on any given day, whether the larger trend is upward or downward.
Forex Trading Lets Investors Capitalize on Fluctuations
Savvy Forex traders know that dramatic shifts in gold prices on any given day present an opportunity for profit. Using an online Forex trading platform to control the purchasing and selling of gold futures allows investors a chance to profit off of short-term fluctuations in the price of gold. At the same time, investors can leverage their liquid capital to control more gold than they could by physically purchasing the metal.
How to Trade Gold?
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