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What To Watch In Gold In The Week AheadSalem-News.com Business
Rough times ahead would be a good thing for gold.
(SALEM, Ore.) - The week ahead is framed to be a very interesting one for gold bugs, with various economic reports coming that will likely set the pace for the movement in the price of the precious metal.
Good or bad, economic data tends to lead to wide swings in the price of gold due to the precious metal’s standing as a safe haven investment.
Key Economic Events To Pay Attention ToOne of the most important economic events that takes place monthly is going to happen on Wednesday. That is the United States jobs report.
The US jobs report is a report that’s compiled by ADP and gives investors and economists a detailed overview of the workforce within the United States.
This report provides data with regard to how many jobs were added or lost during the month, the unemployment rate, and wages. Of course, economies that are doing well, see strong growth in job additions and wages while unemployment rates either fall or remain low.
Any data that suggest anything but this outcome acts as a negative indicator. Too many negative indicators could mean that there are rough times ahead, which would be a good thing for gold.
Another key event that takes place on Wednesday is the Mortgage Applications report. As the name of the report suggests, the MBA Mortgage Applications report gives investors and economists the growth or lack thereof in the amount of mortgage applications taking place in the United States.
This is a key indicator because it shows consumer sentiment with regard to economic growth. After all, if consumers don’t feel comfortable with the stability of the economy in which they live, they’re not likely to apply for a mortgage and tie themselves to long term payments.
Therefore, growth in mortgage applications is considered to be a strong signal while declines in mortgage applications is considered to be a negative signal.
Other Factors To Pay Attention To
Outside of economic data, it’s always a good idea to pay close attention to the core factors that tend to cause movement in the price of gold. These include:
The Key Is Following The Data
At the end of the day, the key to predicting price movement in gold, or any other commodity for that matter, is to follow the data. By paying close attention to the economic, market, and commodity specific data mentioned above, more educated predictions can be made with regard to the direction of the price of gold ahead.
Source: Salem-News.com Special Features Dept.
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